The National Bank gave advice on how to properly manage money

Recommendations on how to properly manage money, on the air of the TV channel "First Information" gave the first Deputy Chairman of the Board of the National Bank Alexander Egorov. It's from sb.by.

The first step is to immediately postpone a certain share on the day of income receipt, do not wait for the end of the month in the hope of putting aside the remainder. It is necessary to allocate the budget only from what is left after saving.

- Second. Create a financial reserve on the ladder system. Divide the funds into two baskets. Keep the operational reserve on a revocable deposit for quick access, and direct the principal amount to an irrevocable deposit in Belarusian rubles for a period of 13 months or even more than three years. So you fix the rate and exempt income from tax, said Alexander Egorov.

The third is to harness the power of compound interest.

- Choose an offer with a monthly capitalization, when earned interest is added to the principal amount and income is accrued to an increased base, the first deputy chairman of the National Bank said. - Fourth. Use digital tools. Today, more than 65 percent of all new bank deposit agreements are opened online, without a physical visit to the branch. This is a great marker of the de-bureaucratization of our banking sector and the digitalization of society. A few clicks on the mobile app and the money starts working.

The fifth step is to comply with digital hygiene: when opening accounts online, keep in mind basic security. Neither bank employees nor law enforcement agencies ever call messengers and ask for a code from SMS. The safest place to save is a personal deposit account.

- The main law of savings: it is not the nominal number of interest on a piece of paper that is critically important, but the real interest rate adjusted for inflation, Alexander Egorov noted. If inflation in the country is conditionally 5-6 percent, and the bank offers a rate of 12.5 percent per annum for an irrevocable ruble deposit for a period of one year, what is your net benefit? The real return is about 6 percent of annual net capital gains.

He offered a comparison:

- If you keep your savings at home in an envelope, with an average annual inflation of even 5 percent in 5 years, your stash’s purchasing power will decrease by almost a quarter. Egorov: Belarus has one hundred percent state guarantee of return of deposits