The first step is to immediately set aside a certain share of your income on the day you receive it rather than waiting until the end of the month in the hope that some money will be left over. You should plan your budget based only on what remains after saving."
Second. Build up a financial reserve using a tiered approach. Divide your funds into two baskets. Keep an operational reserve in a withdrawable deposit for quick access, while placing the bulk of your funds in a non-withdrawable deposit in Belarusian rubles for 13 months or longer, or even for more than three years. This way, you lock in the interest rate and make the income tax-free," Aleksandr Yegorov said.
The third step is to harness the power of compound interest. «Choose an offer with monthly capitalization, when the interest earned is added to the principal and income is then accrued on the increased balance,» he noted.
«Fourth. Use digital tools. Today, more than 65% of all new bank deposit agreements are opened online, without a physical visit to a branch. This is a good indicator of the debureaucratization of our banking sector and the digitalization of society. A couple of taps in a mobile app — and your money starts working,» Aleksandr Yegorov said.
The fifth step is to practice digital literacy: when opening accounts online, it is important to remember basic security rules. Neither bank employees nor law enforcement officers ever call people via messaging apps or ask for an SMS code. The safest place to keep your savings is a personal deposit account.
«The main rule of saving is that what really matters is not the nominal interest rate on paper, but the real interest rate adjusted for inflation,» Aleksandr Yegorov said. «If inflation in the country is, say, 5-6%, and a bank offers an annual interest rate of 12.5% on a ruble non-withdrawable deposit for a term of one year or longer, what is your net gain? The real return is about 6% a year in net capital growth.»
The expert offered a comparison: «If you keep your savings at home in an envelope, with average annual inflation of even 5%, the purchasing power of your nest egg will fall by almost a quarter in five years.»
