It’s New Year’s Day, and almost everyone bets on something. However, in the vast majority of cases, they will sooner or later become oblivious. Therefore, we are not now helping with vows, but rather giving financial tips for this year. Here are the top 5 tips for 2015.
Create your own cash flow table
You must have faced $ 10K, and at the end of the month you didn’t know what you were spending your money on. There is an effective method to help you find the forints that you think are missing. The method is as follows:
Every time you spend, put the block down and collect it in a safe place in the evening or when you get home. (Ideal place for hanging on the fridge, as this is always on your mind). It’s a good idea to aggregate them weekly, but definitely at the end of the month. You’ll find that you can save at least $ 3,500 a day with a little bit more conscious customer behavior. The daily value of USD 3-500 is already USD 10-15 thousand on a monthly basis and USD 120-180 thousand on an annual basis, which corresponds to the average Hungarian earnings (HCSO: USD 153,500).
Since we have been using this technique, we have more than 6-8 thousand forints in our pockets a week!
Take advantage of tax breaks!
Hungary currently has high tax burdens. However, it should also be borne in mind that there are many opportunities that the state supports in some form.
Here is the family tax allowance, according to which the parents are entitled to a tax allowance of USD 10,000 per month for children, a total of USD 20,000 per month for 2 children, and USD 33,000 per person for 3 or more children.
One of the new features of this year is that newlyweds receive a personal income tax deduction of USD 10,000 per month for up to 2 years or until their children are born.
What’s more, you can choose from a variety of financial savings that can benefit from up to $ 280,000 of personal income tax savings (health fund, self-help fund, voluntary pension fund, GFIC account, pension insurance).
Government-funded savings such as the Start account (10 percent, up to a maximum of USD 500 per month) and the housing fund (30 percent, up to a maximum of USD 6,000 per month) were also retained for 2015.
For a family with two children, because of the family tax deduction, it is possible to manage more than 20,000 a month, or 240,000 forints a year.
Have your risk life insurance!
One of the most popular life insurance policies in 2014 was risk life insurance. Contrary to popular belief, such insurances are not only reimbursed at the time of death, but can also compensate for any loss of income through various supplementary insurances.
From 5-6 thousand USD a month, a package can be put together for a person up to 40, which includes the surgical allowance, the daily hospital allowance and the disability. This is important so that you can safely go on sick leave and sick pay without losing your income.
It is worth adjusting the amount of life insurance to the size of your existing loans, so that in the event of a tragedy, the repayment of the loan is not (even) a person. An 8 million USD life insurance for 20 years costs only 12,170 USD per month for a 42 year old. You will have more money than that if you have two children (family tax credit) and if you use a cash flow chart (which you have already found most of this amount).
What about health? How to continue health care?
On January 8, 2015, the Council of the Hundreds held a meeting on the state of our health. Speakers at the event included Gador Gabor, Secretary of State, and Jessica Brown, Chief Economic Officer of the Honvéd Hospital. Among other things, it was a good idea to put together an all-inclusive service package that everyone can get for free, but you can buy the package if you want care sooner.
One way or another, health will undergo significant changes and the burden-sharing system will be replaced by an economic and business model.
In Hungary, it is still in its infancy, but various service-based health insurance is available, through which one can receive priority-free health care without waiting in gratitude. In 2015, it is worth paying attention to.
The cost of such a basic health insurance package (staying with our 42-year-old trial man) is only $ 1,767 a month.
The pension issue remains unresolved
The outstanding financial novelty of 2014 was the launch of pension insurance. However, you can choose from 3 retirement savings for which you can claim a 20 percent personal income tax credit. The maximum limit is USD 150 thousand for the voluntary pension fund, USD 100 thousand for the GFIC account (it may be 130 thousand if you retire by 2020), and the limit is USD 130 thousand for pension insurance.
These are extremely important because after the use of the pension calculator a sad reality comes to our eyes. For example, a 42-year-old who earns $ 160,000 a month will only be entitled to a $ 83,580 state pension. And if the missing nearly 80 thousand forints are missing, no one will make it. By saving $ 19,000 a month for retirement through a good retirement savings plan, you can earn the same income as you did when you were an active worker. And the state will support your retirement savings with $ 45,600 a year.
2015 will be the year of conscious people
It’s the beginning of the year, everyone is full of energy and plans. After summing up 2014, we need to look at what we have done well and what needs to be changed. In 2015, if possible, we need to pay even more attention to our financial culture, spending and savings habits, because good opportunities surround us. If one or two tips were already familiar and you have tried it in practice, then you are on the right track. Hopefully, these 5 financial tips for 2015 will help you reach your aspirations and goals.