The challenge is to know what to invest your savings in. Obviously the choice is up to you, because each and every household has its peculiarities. However, it is quite possible to define the main lines in investment.

First, it is important to know your personal projects for the next 10 years. Buying a house, setting up a company, working abroad are all lifestyle choices that will necessarily influence the choice of your investments. It is based on these projects that you will define a strategy to manage your wealth.

I for one intend to go live abroad in the coming years or possibly invest my money in the creation of a company. Hence, I cannot afford to block my capital for too long.

As for the evaluation of different investments, I would say there are three parameters that count: profitability, risk involved, and finally the liquidity of the investment (the ability to recover your money slowly or quickly). An important factor is taxation. I evaluate taxation together with profitability (profitability after tax).

The purchase of your main residence is an attractive investment but due to the high inflation that has affected real estate in the last 15 years I recommend you be especially careful on this point.

I find my financial situation rather peculiar because at 30 I have no credit but only cash. I would have liked to invest in real estate but I have not had the opportunity. I think doing like everyone is not necessarily the best option (especially all those executives who take 25 years of credit to live in a tiny box). At least now I have the means to finance my career and earn even more money.

Excel sheet to manage my personal finances

I use it every night to note what I spent and what I earned (for those employees on a payroll you enter what you’ve earned once a month after your receive your pay). I have an extra column for total reduction using promo codes.

This Excel sheet has three tabs, the first entitled “Receipts” allows me to note my daily receipts and expenses (if you like the approach “once a month I take out all my withdrawal receipts” nothing prevents you from entering the total that day and nothing the other days. It boils down to the same thing). The second tab labeled “Monthly Receipts” allows for a summary by month and serves in particular to show month by month how much money has been saved.

A third tab called “Budget” is more like a reminder. This helps me note my estimated budget and I can return to it quickly.

The Excel sheet is simple but I have used it for several years and it lets me know exactly where I am in my expenses and my cash flow, feel free to ask me questions and adjust according to your needs. Like everything in life, you have to find the method that works for you.