At Christmas, while the children are impatient at the idea of unwrapping their presents, the older ones, on the other hand, receive money envelopes most of the time. Failing to unearth the perfect gift, this practice can prove to be simpler and more practical, thus avoiding offering a gift that is likely to displease. Here are some tips for making good use of the gifts received at Christmas.
It’s the end of the year, time for festivities. It often happens to see Santa Claus slipping a few envelopes containing money or a check under the tree. If in this case, you receive money at Christmas, several possibilities are available to you. Although it may be tempting to spend them on pleasure, it would be wiser to save them or invest them. If you’ve received some money and you’re still not sure what to do with it, here are some tips to consider.
Considered an end-of-year bonus, the first instinct you have after receiving money as a Christmas present is to spend it. Although you are in a stable personal and professional situation, it is still tempting to spend this amount of money. Nevertheless, building up savings to face the vagaries of life has become necessary. Here is how to place your Christmas gifts.
Money as a Christmas gift. Source: spm
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Livret A to save the money received at Christmas
Whether you have a project in mind or not, it is wise to start building up reserves as soon as possible to ensure safety and savings. As for your Christmas gifts, you can place them in a regulated savings account such as the Livret A. Being the investment most used by the French, the livret A is exempt from taxes and compulsory levies. This means of savings also offers an advantageous rate of return. The latter stands at 2% at the end of the year.
You can also opt for other house bank books with much more advantageous rates of pay but which will therefore be taxed. Putting your money in a passbook is a way to save it and withdraw it whenever you want.
If you already benefit from precautionary savings, it is time to embark on riskier, more efficient investments that offer better profitability. Only problem ! Your funds will be blocked for a certain period. Although the need to withdraw these funds may reappear at any time, these means of investment remain highly appreciated by the French.
Life insurance is an excellent way to finance medium-long term projects. This has many advantages such as tax reductions, secure transfers of capital or the possibility of converting your capital into a life annuity. On the other hand, you can also open a retirement savings plan (PER), which you can release and collect later either in the form of a life annuity or retirement capital.
Coins and banknotes. Source: spm
If you are younger, you can also think about putting your money into stock market investments. By getting started, you will benefit from very attractive returns over the long term. However, investing in the stock market is as rewarding as it is risky.. To succeed, training and familiarization with the financial markets may be necessary to develop your skills.
You would have understood it ! Spending the money received during the holiday season is by no means wise. Thanks to these tips, you can then save or invest it in a more thoughtful way. This will allow you to be better armed in case of the unexpected!
Read also Should cash be kept at home or at the bank?
Via SPM
