Making the financial cushion work.

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From time to time I am reproached for pouring water in articles devoted to investor thinking. Like, instead of saying what exactly to buy and when to sell, I am saying that everyone should think independently and comprehend their financial strategy.

You know, when I was just starting out, I sifted through all the available literature on the topic of investment, and, like you, was waiting for a ready-made solution, a kind of universal pill. I was expecting to find the answer to two basic questions somewhere:

It took me years to understand why the books do not provide answers to these questions, and all the attention is paid to thinking and, for the most part, already known investment instruments.

In general, the answers are there, but they are too simple for mind games and too difficult to execute, because they require changes from a person (discipline, consistency, work with fear and greed, etc.)

One such answer I want to touch on in this post is synergy.

The idea voiced by #Robert Kiyosaki in his book «

I have already talked about how I built synergy in the field of cryptocurrency, where each satoshi works to achieve the result (

He also talked about how correct consumption helps a novice investor, when bonuses, discounts and cashback contribute to the accumulation of capital (

Now I want to talk about another very simple synergy — between a financial safety cushion (FPB) and investment.

The financial airbag is created and accumulated

At first, I kept the entire FPB in cash at home. Then, I kept the entire amount in foreign currency accounts at VTB Bank, until the bank prohibited the issuance of a debit card to me personally. When this happened, I had an epiphany that keeping all the money in the bank is not the safest decision, even in our time. And then I moved to Tinkoff Bank.

Having learned from experience, I transferred only a part of my FPB to the bank accounts. And it turned out to be very convenient, since force majeure sometimes occurred on the way (for example, when I was in another city or country). Another part of the money is still kept at home.

As a result, I have two savings accounts — with Sberbank and Tinkoff. These accounts are part of my financial safety net.

Interest on these accounts is small (about 3%), but is charged on a monthly basis. And all the money can be withdrawn from the account to the card at any time.

I send these charges every month to a brokerage account: from Sberbank, using a fast payment system, I transfer money to Tinkoff Bank, from there to a brokerage account of the same bank.

And I immediately have a counter question: are you doing this?

Do you accumulate investment capital through interest on savings accounts, do you use discounts in stores and bank cashback to buy company shares?

Why? It’s so easy! It’s so commonplace that everyone knows and understands it. But for some reason, very few people do.

FPB, even in spite of the currency basket (3 currencies with floating rates), is being eaten away by inflation? So for a part of this amount, I get interest, for which I buy shares that pay dividends and have the potential for growth in value.

That is, I turn the damage from the forced storage of part of the money for my own financial security into income. The very money that makes new money.

Of course, we are talking about small amounts. But if a person has never been involved in investments, there is no accumulated capital, and the income is average in the city — why not use all available opportunities for capital accumulation?

Recently, one person in the comments to the article «There are 1000 rubles. What to invest in?» asked a question of the following nature:

I took out a calculator and calculated, using Lukoil’s example, how many shares are needed to have an appropriate dividend income. It turned out something of the order of 6,000,000 rubles in shares and on condition that the company will continue to pay dividends in the region of 500 rubles per share.

With all the risks: keeping all the money in the shares of one company is unreasonable, and you need to make a portfolio of at least 3 companies (and recalculate the dividend yield). That is, you need experience.

So here’s the answer — invest 1,000 every month. Invest as much as you can. Use any synergy, any benefit in order to increase your capital. After all, it is this capital that will continue to feed you (and possibly your children as well).

«So do you recommend buying gold?»

I try to avoid the difficult in life, but at the same time I complicate what works. Another author, Nasim Taleb, gave this idea

Finally: did you know that banks in many European countries have a negative interest rate on deposits?

People pay to keep their money in the bank.

Think how much we do not value what we have. And how few opportunities available to us we use.

Thank you for reading. Hope you found this post helpful.

If so, please like it.

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