The financial markets have rocketed. The panic affected the markets with widespread declines in the various asset classes. It is possible that their savings have also suffered a great devaluation. In this context, it is natural to ask what to do with your savings. In this article we will leave you some points for your reflection.
Don't forget the reasons to save money
The previous point in this discussion is to understand the reasons why you save money. We save for many things and each family has its priorities, priorities that should not have suffered so many changes with this crisis that we are going through. You may be tempted to divert part of your savings to ensure your family's financial security. You may need some liquidity. However, if priorities and reasons for savings remain, it may not make sense to discard your investments now.
Before mobilizing your savings ...
See if you really need to mobilize your savings. The temptation is great. We can have a reduction in income and we want to maintain our quality of life. We may need to respond to an emergency. But the fact that you have the money available should not mean that you should use it right away. You can choose to keep the money invested (maybe you even had a big devaluation of your investment) and look elsewhere to cut costs. If you mobilize your money soon, you will lose the incentive to look at your consumption habits and cut unnecessary expenses (believe there are enough).
If you have no alternative ...
If there is really no alternative then ... you can raise your savings. As we have always argued, savings serve to face unforeseen circumstances and to provide us with financial security and comfort (it is not by chance that we always and continuously call for the creation of savings habits). However, before withdrawing the money, we suggest that you set up a plan to restore savings as soon as possible. To resume financial security.
What about my PPR?
We have received several comments and questions regarding the possibility of redeeming our PPR. It's normal. We need money and this money is destined to be withdrawn 10 or 20 years from now. Not forgetting what we mentioned earlier, we alert you to a certainty soon. The support measures for companies and families that are being presented will place a heavy burden on Social Security accounts. So, it is very likely that in a while we will have less favorable news regarding our future reform. It is certain that today is a day to solve problems and that we will have time to tackle this problem. However, do not assume that you do not need this savings, as you will need it more than ever.
If you have money available in your PPR, a solution may be to ask the bank to use that money to settle your mortgage payments. This way you not only gain a financial slack, reduce your debt and avoid penalties for raising money ahead of time.
Money serves the purpose of ensuring our financial stability and quality of life. Today, more than ever, we need to protect ourselves and ensure that we will have some liquidity to support the coming months, which will be of great challenges for everyone. That is why it is essential that you think about alternatives to cut costs and to increase your savings.