Beauty & Saving – How To Get Return On Your Money

The beauty industry is huge and it seems to be increasingly important for many women but also for many men. All people have a ‘basic beauty‘ that doesn’t have with makeup or other beauty products to do. There are many factors that affect one’s beauty and in my world, this phenomenon is based on four pillars that consist of good sleep, good nutrition, exercise and good economic housekeeping. The last pillar is that which permeates the other three pillars. By being good financially you sleep better, eat better and you probably have an active life in the form of some physical activity. That is why it is important to get started saving.

Creating a good savings plan can seem awkward and uninteresting in many people’s eyes, but it doesn’t have to be. Having a buffer affects even the mood in such a positive way so that the ladder feels easier and the worries are fewer, which leads to control and wellbeing.

To get started with your savings, you don’t really need to do more than put away 10% of your income every month. This pot should preferably not be on any ordinary account without a savings bank that gives interest. However, the best thing is to get started with funds and/or shares in order to be able to influence the pot as much as possible.

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To Get Started With A Good Savings Plan

  • Decide which saving form suits you depending on the savings and how active you want to be in saving, for example. Savings account, funds or shares.
  • Save regularly
  • Spread your risks

The Various Saving Forms

Savings

By saving money through a savings account you get interest on your savings and are associated with low risk. Most banks have savings accounts but terms differ between banks. It is, therefore, necessary to read about different conditions.

Funds

Investing in funds is a safer alternative than investing in handpicked shares. A fund is a box of chocolates where the pralines are the different securities (eg. a fund manager has chosen them for you). You own the chocolate box with the pralines but you do not decide the content of it, this is the fund manager’s job.

There are different types of funds such as Equity funds, fixed income funds, mutual funds, hedge funds, fund-in funds, index funds and funds that invest in specific industries and markets, etc.

Shares

So, what is a stock? A share is an ownership share of a limited liability company which means that you become a partner in the company that you choose to invest in. By owning shares, you can make money through dividends or by an increase in value of the share i.e. you buy a stock for eg. 50 USD and choose to sell it when it has gone up in value eg. To 150 USD. You have then earned 100 USD on that share.

For example, in Sweden, one can choose to purchase different types of shares A-, B-, C-shares or Pref shares. An A share is preferably for a saver who wants to be engaged in the company while B and C are more common among savers. A preference share is a share with preferential rights (dividends before A, B, and C shares) on dividends and usually has a fixed amount of the distribution.

You can see what type of share it is by looking at the letter after the company’s name eg. Skanska B.

This may not be the case in other countries and therefore you may need to research this in your own country to make sure what the standard is there.

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Rounding

With this article, I would like to give you a shallow introduction to various savings forms that are available. I’m planning to write more in-depth articles about the various savings forms mentioned above in the future and what your chances of return may be.

If you have suggestions for more savings forms, you can leave them in the comments section below.

Lots of hugs,

Kili

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