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World Savings Day, 10 tips to start saving and investing

Saving and investing are concepts that everyone should know to achieve long-term financial stability.
World Savings Day which occurs today, 31 October, offers a unique opportunity to reflect on how to manage money and improve your financial situation.
This article presents 10 valuable tips, formulated in a clear and practical way, to start saving and investing wisely.
This is advice suitable for anyone, from beginners to more experienced investors, offering a concrete and realistic approach to managing personal finances.
No abstract or complicated theories, but suggestions that can be applied in everyday life, to build a more solid financial future.
Let's see in detail 10 tips to start saving and investing successfully.
Why is saving important? The importance of saving cannot be underestimated.
Saving means putting aside part of our money instead of spending everything we earn.
This gives us the ability to deal with unexpected expenses, such as medical emergencies or home repairs, without having to resort to expensive loans.
Saving is the foundation of a stable financial situation, providing both short- and long-term benefits, such as purchasing a home, financing our children's education, or retirement.
From creating a safety net to deal with unexpected events to achieving ambitious financial goals, saving is the first step towards a more secure economic future.
Saving in a disciplined way allows you to accumulate an emergency fund that guarantees peace of mind in the event of job loss or economic crisis, but it is also the first step in investing.
The role of financial education In the third edition of the Edufin International Observatory, Pictet Asset Management presented a study on the state of the art of financial literacy in Italy.
In recent years, numerous financial education initiatives have been promoted with the aim of making information more accessible to an increasingly wider audience and encouraging informed investment choices.
Pictet's research has revealed interesting data on young people's growing interest in finance, although they recognize that they still need to deepen their knowledge.
Trust in social networks as sources of financial information is constantly growing, but there is a clear need for more targeted and educational content.
In an increasingly uncertain financial market, financial education emerges as a crucial element for guiding informed and safe investment choices.
How to start saving? 10 Helpful Tips In today's fast-paced world, saving may seem like an ambitious goal.
However, with the right strategies, you can start building a solid financial foundation.
Here are some handy strategies to help you start saving: Expense log: Tracking every expense gives you a clear view of your spending habits, allowing you to identify areas where you can cut back.
Establish a realistic budget: Setting clear limits for your monthly expenses helps you maintain financial control and avoid overspending.
Cut unnecessary expenses: Forgoing small, occasional luxuries can add up to significant sums in the long run.
Small sacrifices today for a more stable financial future.
Save on energy: Adopt energy-saving habits in your home, such as turning off lights when they're not needed or adjusting your thermostat to reduce heating and cooling costs.
Reduce the use of subscriptions or additional services: Periodically review the subscriptions and services you use and evaluate whether there are savings opportunities or whether some of them can be canceled or reduced.
Group shopping: By joining buying groups or taking advantage of special offers on commonly used items, you can save money.
Plan major purchases ahead of time: Taking the time to shop around for the best deals before making major purchases, such as electronics or furniture, can lead to significant savings.
50-30-20 rule: Splitting your income into essential expenses, personal pleasures and savings is an effective way to ensure balanced management of your finances.
Automate Savings: Setting up an automatic transfer to a savings account each month is a simple but powerful way to gradually build a fund.
Search for discounts and offers: Being aware of promotions and offers can help you save on everyday purchases.
By following these strategies, starting to save becomes a concrete and achievable goal, laying the foundations for a safer and more stable financial future.
How to Start Investing After learning how to save, the next step toward building a stable financial future is investing.
However, it is crucial to do so prudently, carefully considering your risk profile and financial goals.
Below we see some useful tips for investing wisely in different options: Deposit Account (for the more cautious) This option is ideal for those looking for a safe investment.
Savings accounts offer a guaranteed interest rate and low associated risks.
In recent months, many banks and financial institutions have started to offer attractive returns for accounts locked for a certain period of time.
However, returns can be more modest than other forms of investments.
Securities Account (for more active investors) The securities account is ideal for those who are willing to be more active in investing.
Through this tool, it is possible to buy shares and participate directly in the financial markets.
It is essential to conduct thorough research and diversify your portfolio to mitigate the risks of investing in stocks.
However, it should be remembered that stock investing can be volatile, but offers opportunities for significant growth.
Bonds (safety and guaranteed returns) Bonds are an option for investors who prefer a more conservative strategy.
They offer a regular income stream and a lower level of risk than stocks.
It is important to choose bonds issued by reliable entities to ensure the stability of the invested capital.
Mutual Funds for Effective Diversification Mutual funds (ETFs) are an effective way to diversify your portfolio.
Managed by financial professionals, these funds allow you to invest in a wide range of assets, reducing overall risk.
Mutual funds are particularly suitable for those who prefer not to manage their investment assets directly.
Capital Accumulation Plans (CAP) Capital Accumulation Plans represent a structured and disciplined approach to long-term investing.
These plans offer an effective way to accumulate wealth over time, providing the flexibility to choose from different investment options based on your risk profile and financial goals.
Capital Accumulation Plans can be implemented through a series of financial instruments, such as mutual funds, insurance policies or planned investment programs.
This allows investors to contribute to a fund periodically, allowing the capital to grow gradually over time.
This strategy is particularly suitable for those who prefer a constant and regular approach to investing, avoiding excessive fluctuations in the financial markets.
Pension funds (for future security) Pension funds are designed to provide financial security in retirement.
By regularly contributing to a pension fund (GDP or PIP), it is possible to accumulate significant capital for your future retirement, often benefiting from tax advantages.
Real Estate Investments Real estate investments offer a unique opportunity to invest in physical assets such as homes or commercial properties.
This option can offer stable returns over time and represent a tangible form of investment.
Real estate investments require a certain amount of upfront capital, but can generate passive income and appreciation over the years.
However, it requires a good understanding of the local real estate market.
Each of these options offers different benefits and specific risks.
It is essential to diversify your portfolio to balance the returns and associated risks.
Consulting a qualified financial advisor can be a wise move to make the investment decisions best suited to your needs.
The identikit of Italian investors Italian investors manage assets of over 520 billion euros through investments in funds.
On average, each of them invests around 45,000 euros.
This varies depending on the type of fund chosen, with average investments of 27,000 euros for Italian funds and 52,000 euros for foreign funds.
The most common form of investment is the single payment, chosen by 62% of investors, while 22% prefer accumulation plans (PAC) and 16% adopt a combination of both.
Young people, such as Millennials and Generation Z, prefer savings plans, with over 50% of them choosing them.
On the contrary, Boomers prefer investing in a single solution.
As regards the types of funds, Italians invest mainly in flexible (42%) and bond funds (26%), followed by balanced (22%) and equity funds (10%).
For foreign funds, the equity component is predominant, reaching 48%.
The majority of Italian funds are purchased through banks (95%), while foreign funds are often distributed through networks of financial advisors.
The average age of investors is 61, but young people under 40 are starting to invest.
Older investors, over 77 years of age, invest more on average, while younger ones invest smaller sums.

Author: Hermes A.I.

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