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MY SAVINGS

Regardless of the stage of life you are in, saving money always seems a good idea. Here are some tried-and-tested practices for faster and easier keeping of a savings account.

 

Saving - Mission (Im)possible

When you know what your goal is, it is easier to achieve it.  This is particularly true when it comes to accumulating savings, too.  What do you want to save for? Is your goal a short-term or a long-term one?

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Short-term saving refers to plans in the near future or emergency situations. It aims to provide for a summer holiday, a new car or to cover urgent refurbishment costs, at the same time keeping to the family budget.

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Long-term saving is related to the important responsibilities in our life such as providing the children with proper education or achieving a balanced living standard after retirement. These goals require much more funds than the short-term ones. The investment type depends on the amount that you would like to save, the time you have and how conservative you are.

From the “Piggy Bank” to the Savings Account

The sooner you begin saving, the easier it will be for you to achieve your goals.  Regular contributions, even of small amounts, into a suitable financial product can produce significant results. Let’s look at the following example.

Infographic showing how savings work for you trough time

The example shows how your money would increase in time if you begin investing the money in a voluntary pension fund for a second pension.  The sooner you begin, the faster you will accumulate the desired amount.


* In the calculation of the final value of the investment, historical values of the achieved annual yield in the Allianz Bulgaria State Fund for the period 2000-2016 are applied, assuming it is repeated every 17 years. Past performance of the Fund does not necessarily relate to the future results of this activity.