How should you manage your money when you have 30 million VND left over each month?

That's the advice from personal finance consultant Nguyen Thi Thu Huong of FIDT Investment Consulting and Asset Management Joint Stock Company.

She believes that if you don't already have a personal financial plan, the first thing to do when you have 30 million VND extra per month is to prepare some financial contingency plans for yourself and your family.

Accordingly, the financial plan will consist of two parts. The first part is an emergency fund, corresponding to 3-6 months of essential expenses. This fund should be allocated in a savings account for 1-6 months to ensure liquidity and optimize capital. The second part will be life insurance and health insurance. This is an element that experts recommend as almost mandatory before making investments, because the support from insurance when an insured event occurs will minimize the impact on the long-term investment plan for yourself and your family.

" The recommended insurance coverage level is 5-8% of your income or 1% of your assets, whichever is greater ," the expert advised.

After preparing a financial contingency plan, you can then consider where to keep your money. (Illustrative image)

After completing the above steps, we will move on to the planning and portfolio creation phase. With a monthly balance of 30 million VND, you can allocate your funds as follows:

“ First, consider investing in gold. Although gold prices are currently volatile and have just gone through a period of rapid growth, it remains a particularly popular investment channel for those seeking safety and capital preservation in an unstable economic environment. However, a middle-class individual should only hold gold at a rate of 5-10% of their total assets ,” the expert advised.

Next, consider investing in stocks and mutual funds. Investing in stocks requires a high level of knowledge and discipline. This channel carries significant risks; if you don't want to take too many risks and spend too much time, you can invest indirectly through mutual funds. Some advantages of this channel include low investment costs and low risk because investments are managed by professionals.

Furthermore, with a surplus of 30 million VND per month, using financial leverage to invest in real estate is also worth considering. However, the following conditions must be met: The interest rate on loans for real estate investment should be below 9% per year; the total amount borrowed should not exceed 75% of the total monthly savings.

According to experts, these are investment channels, and also the most effective ways to preserve money when someone has 30 million VND left over each month.

Cong Hieu

Source: https://vtcnews.vn/nen-giu-tien-the-nao-khi-moi-thang-du-30-trieu-dong-ar908035.html