Piano B, cash and investments

The period we are living in demonstrates, once again, that we need to equip ourselves to face economic vicissitudes. Also because there will always be pandemics, guerre, energy crises, inflationary scenarios, international tensions, ecc. to influence our family economy.

In August I published a Reel su Facebook in which I underlined the need for everyone to work on a Plan B, increase liquidity and invest to earn from your money.

Piano B (la seconda, the third is…chance!)

I give the example of Luca, a fifty year old reader of my blog who, despite currently having a job and therefore an income deriving from it, he returned to the school desks.

A Driving School!

In fact, being already in possession of higher category driving licences (trucks, bus, etc..) he threw himself wholeheartedly into the classroom training and driving lessons to obtain the qualification that allows you to carry out professional activities related to the road transport of goods (CQC Goods).

And it won't stop here!

In fact, the next step will be the Driver Qualification Card for passenger transport (CQC People) reserved for those who transport people with vehicles with a capacity greater than 9 seats (bus) in scheduled public service or rental with driver.

This is the path taken by Luca to be resilient in the face of any decisions made by others – employers, ecc. – with which, for example, you may suffer a salary reduction, a request to transfer the workplace or, even worse, a dismissal.

How to build a Plan B that allows you to start again in another work sector?

It can be read Alternatives by Sebastiano Zanolli, the reference book in Italy to immediately start developing the ability to predict events, imagine scenarios and create alternatives.

Then there is for those who love American films Suddenly Love directed by and starring Tom Hanks. It tells the story of Larry Crowne, a fired salesman who goes back to school to graduate and improve his social position.

Cash

It is the need for everyone to have liquidity (in cash, on the deposit account, on the savings account, etc..) to deal with emergencies. It's always helpful to have sums of money earmarked for unexpected expenses that you can deal with quickly. Financial advisors recommend three/four monthly incomes set aside, on the aforementioned instruments which are easily liquidated.

Various searches* they tell us that one in four families would not be able to face an unexpected expense equal to 1.000 € with its own resources. If the unexpected expense was higher, for example 10.000 €, could cope with his own powers a little more than a family of three.

Discover the netflixization of savings

There are independent comparison sites online, impartial and completely free that allow you to choose between the various APPs useful for setting up digital savings solutions and automatic monthly provisions, even starting from small amounts of money.

Hiding money from daily expenses means understanding that there are essential expenses and unnecessary expenses. Take a short pause for reflection before spending money to eliminate consumption that would prove useless.

Investimenti

But, once you are invested in themselves, We created an emergency fund it's time to think about grow your money (to deal with periods of high inflation, to improve future living standards, to help their children study, to accumulate wealth for old age, etc..).

It therefore becomes important to invest by making a good one diversification between stocks (direct purchase or with ETFs), obbligazioni (Government bonds but also corporate bonds), properties (direct purchase to rent, real estate crowdfunding, etc..), raw material (gold ingots and coins to be kept in safety deposit box or, also in this case, with ETFs), alternative/collectible – discover the Credit Suisse report – (vintage cars, clocks, jewelry, etc..)

Alex Gaetani

Sources*: Banca d'Italia, Patti Chiari, What matters, Cesifin Foundation, Consob, Swiss credit, Independent financial advisor sites.