In times of uncertain inflation and interest rate forecasts, it is extra important to have a buffer to handle unexpected economic situations, says Moa Langemark.
But a new report from the Financial Supervisory Authority (FI) shows that half of the customers surveyed have less than 10,000 kronor in buffer savings on a savings account and only about three out of ten customers have 50,000 kronor or more available on a savings account.
It is the most important savings we have. The buffer should never be in fund or stock savings, where the situation is unpredictable and can quickly change. Instead, the buffer should be available and lie on a savings account that has free withdrawals and is covered by deposit insurance.
"A little at a time"
Putting aside money in times of soaring food prices, rising mortgage rates, and rents can be easier said than done – so you have to start cautiously, says Moa Langemark.
To make savings last in the long term, it is important to put aside a little at a time. Don't start by setting aside a huge sum, only to realize that you still have to take from your savings account. You need to find a level that works for your own economy.
How much a buffer should be is individual. But a good starting point is approximately two to three months' necessary expenses.
You have to count up the expenses you have, bills, household, food. Then you get a sum you can multiply.
Men take more risks
FI's report also shows that men are more likely than women to take risks in their savings. Savings accounts are the largest form of savings for both genders. However, women have a larger proportion of their assets in savings accounts, 46 percent, compared to men's 39 percent. While men have a larger proportion of their assets in stocks, 30 percent, compared to women's 18 percent.
Money that lies on the stock exchange should be money that you don't need to use in the next five to ten years. So if you currently have no savings at all, it's not stock savings you should engage in.
If you have a buffer and want to expand your savings to stocks and funds, Moa Langemark means that it is important to read up.
There are always individual interests that govern, but in general, it is good to read up thoroughly and never invest in something you don't understand. Broad, cheap funds suit most people, while stocks require more homework.
