24.06.2021
ROMANIA MARKETING CAMPAIGNS CONTINUE
"Our friendship is very important for tourism, as we are neighbors and it is extremely important to maintain good relations." This was said by the Minister of Tourism Stella Baltova after a meeting with the Ambassador of Romania to Bulgaria Brundusa Predescu. The two discussed the state of the tourism sector in both countries.
Our northern neighbor is in first place in inbound tourism in our country in recent years. Minister Baltova expressed hope that this trend will continue in the future. "We are also continuing our integrated marketing campaigns for the Romanian market," the tourism minister explained. The ambassador confirmed that these activities are visible in Romania and influence the choice to travel to Bulgaria. For the period January - April this year were reported over 103 thousand visits by Romanian tourists in our country, and only from May 27 to June 17, according to unconfirmed data, over 20 thousand Romanian tourists spent the night in accommodation in Bulgaria. In this regard, the caretaker Minister assured Ambassador Predescu that the measures taken in our country in connection with the epidemic situation are clear and strictly observed.
Ambassador Predescu praised the work in line with the authorities in the two countries in the recent opening of borders and the lifting of border restrictions.
Romania has also stated its readiness to partner with Bulgaria on the common path to full membership in the Organization for Economic Co-operation and Development (OECD). The two countries will join forces for joint future work within the influential organization to improve the results of the tourism industry.
The meeting also highlighted the good cooperation and readiness for fruitful work in the framework of the working group for tourism at the Black Sea Economic Cooperation Organization, where Romania is a coordinating country until 2022.
According to Ambassador Predescu, it is important for the two countries to continue working together - both to stimulate the tourism business and for other sectors of the economy. She also informed that Romania offers many opportunities for tourism that would be of interest to Bulgarian tourists.
The meeting discussed bilateral initiatives such as the offer of joint products and cultural tourist routes with the idea of attracting guests from distant tourist markets, especially after the end of the global pandemic of Covid-19.
In the context of the intensification of the season, the topics of the transit of buses through Romania with Ukrainian and Moldovan tourists wishing to spend their holidays in Bulgaria, as well as the passage of Romanian tourists through Bulgaria in the direction of Greece were discussed.
18.06.2021
ENTREPRENEURSHIP: INVESTMENTS AMOUNTING TO BGN 5.32 MILLION WERE RECEIVED BY 13 STARTUPS
Investments in the amount of BGN 5.32 million were received by 13 companies through the accelerator program "Vitosha ACCELERATE" of the intermediary "Vitosha Venture Partners". BGN 5.16 million are public funds, as the resource is provided by the Fund of Funds under the Operational Program "Innovation and Competitiveness" 2014-2020 (OPIC), co-financed by the European Regional Development Fund (ERDF). The additionally attracted private capital amounts to nearly BGN 160,000, the Fund of Funds announced.
Cloud Tech (NulaBG) is one of seven companies in the accelerator program to receive funding. It is from the fintech sector and is a platform for banking and accounting for small and medium businesses.
Grid Metrix is from the artificial intelligence sector. The company helps utility companies get useful information about the efficiency of their infrastructure through artificial intelligence.
Trace du Teest is from the food technology sector and is a platform that enables chain stores, supermarkets, restaurants, bakeries, hotels and more. to monetize expired food and goods; those that are non-commercial or difficult to sell.
Fidu Trade is an all-digital provider of financial services for small and medium-sized exporters from emerging markets to Western Europe. The company is developing an innovative fintech platform that allows Bulgarian exporters to monetize their receivables at the time of sending the goods or performing the service. The company is from the fintech sector.
Augment is from the e-sports sector and is a data analysis platform for e-sports.
Bye Bye Stuttering Institute is an online platform that helps people with speech difficulties. Through it, they can conduct their own therapy with the support of their loved ones. This is an opportunity that traditional therapies do not offer. The company is in the healthcare sector - healthtech.
Ecopolytech is developing biodegradable polymers and environmental solutions that will serve the industry to move from artificial materials to the use of biodegradable equivalents for the manufacture of disposable products. The company is from the sector - clean technologies.
The Fund of Funds informed that outside the accelerator program "Vitosha Venture Partners-Fund I" KD closed six more investment deals.
Omnio is from the regtech sector and provides an artificial intelligence investigation software solution that automates eligibility and financial fraud prevention processes for financial institutions. Funds in the amount of BGN 391,166 have been invested for the development of the platform and for the implementation of Omnio in financial institutions.
Assen Aeronautics Europe (Assen Aero) from the aeronautics sector is developing a unique drone for transportation. With the help of the investment provided by the fund over BGN 1.173 million, the company will develop its first prototype, which will be able to safely transport people.
Petmall is one of the fastest growing companies in the pet food and accessories trade. An investment of BGN 1.564 million will help the company implement new business models, expand its market and grow its online sales.
TokWise Ltd. (TokWise) is an innovative platform for managing a portfolio of projects for the production of green energy, which helps optimize the business models of energy companies. The investment of BGN 293,375 will help the platform reach new customers in Bulgaria and Europe and upgrade its product. It is selected by sector - Software as a service, Green energy.
Pellet Box, which is in the process of being established, will operate in the sector - energy efficiency/renewable energy. It is the first company in Bulgaria to provide easy, round-the-clock access to pellets and other bulk goods through vending machines. Pellet Box also offers personalized solutions for households with a yard, providing their heating needs. Vitosha Ventures Partners is investing BGN 391,166 in implementing the company's solutions.
Meat Me Bar from the foodtech sector creates innovative, healthy, high-quality and affordable foods that are low in carbohydrates, from all-natural ingredients. With the investment of BGN 782,332, the company will expand its market and develop a series of other innovative and healthy additions to its product line.
We remind you that Vitosha Ventures Partners manages a fund in the amount of BGN 50.7 million, of which BGN 49.1 million are public funds provided through the Fund of Funds from the Operational Program "Innovation and Competitiveness" 2014-2020 (OPIC), co-financed by the European Regional Development Fund, and the rest is private co-financing.
By the end of 2023, the fund manager must invest in nearly a hundred start-up companies at an early stage of their development. Small and medium-sized enterprises at the acceleration stage can receive financing from BGN 30,000 to BGN 100,000. Between BGN 30,000 and BGN 2 million will be received by the more advanced companies in the development of their product or the creation of a prototype.
16.06.2021
POSTING AND SENDING OF EMPLOYEES TO A COUNTRY OF THE EUROPEAN UNION
This material aims to give an overview of the current legislation applicable to the posting of employees in the framework of the provision of services in a country of the European Union.
The topic is gaining popularity again as Europe and the world begin to slowly but surely shake off the Covid-19 crisis and the physical movement of people on the Old Continent is beginning to intensify.
In addition, at the beginning of the year, amendments to the Ordinance on the terms and conditions for posting and sending employees in the framework of the provision of services (the Ordinance) were adopted, which significantly changed the regulatory framework.
The basic regulation is in art. 121a of the Labor Code. General posting and sending of employees in the framework of the provision of services occurs when a Bulgarian employer posts a worker or employee in the territory of another EU Member State, on the basis of a contract concluded between the employer and a third party - user of services or when the employee is seconded to an undertaking in the same group. Of course, the regulation is also applicable when the employer is a person registered under the legislation of another EU Member State and posting an employee on the territory of the Republic of Bulgaria, as well as in cases where it is an enterprise that provides temporary work.
This article will focus on the posting of workers and employees by a Bulgarian employer on the basis of a contract concluded between the employer and a third party - user of the services. The remaining cases will be the subject of further materials.
First of all, there should be an employment relationship between the employer and the employees valid for the entire period of the secondment.
The posting of workers is carried out under a contract which the employer, as a contractor or subcontractor, concludes with a contracting authority from an EU or EEA Member State. In view of the above, it is mandatory to have a contract between the Bulgarian employer and the user of services in the other Member State.
The ordinance requires the employer and the employee to agree with an additional written agreement on a change in the existing employment relationship between them for the duration of the secondment. This additional agreement should regulate: the nature and place of work, the start and end date of the secondment, the amount of basic and additional remuneration, the length of working days and weeks, holidays, housing conditions, type of vehicles and route, etc.
An essential element of the posting relationship is that posted workers cannot and should not be placed at a disadvantage (working conditions) by local workers for a position in the host country. The general concept of "working conditions" should be understood as: minimum rest, maximum working hours, minimum paid annual leave, remuneration, health and safety at work, etc.
In case the conditions of employment in our country are more favorable for the employee than the conditions in the host country, these more favorable conditions will be applicable.
The employer is obliged to accrue and pay the employee the agreed remuneration, but not less than the established amount of the basic salary and additional remuneration for the same or similar work in the host country, for the entire period of secondment or dispatch.
Not only Bulgarian insurance legislation applies (by virtue of certificate A1), but also the laws in force in the host country.
A1 is a certificate issued by the competent territorial directorate of the NRA in accordance with European Regulation (EC) № 883/2004. The purpose of the certificate is to determine in which country the employee's social security contributions will be paid, namely - whether in Bulgaria or in the country where the employee is posted (host country).
The application for an A1 certificate shall be submitted before the staff are sent to the host country. The request can be made after the start of the business trip. In the absence of a valid certificate or a refusal to issue it by the NRA, the competent institutions in the host country may charge social security contributions. The issuance of Certificate A1 is applicable if you work in another EU country for more than one month and up to a maximum of 24 months. After the expiry of the maximum period, the mission must be suspended for at least two months.
The issuance of the certificate (respectively the applicability of the Bulgarian insurance legislation) is presupposed by a number of conditions that the employer must meet, including: to have an economic history - at least 3-4 months to operate in Bulgaria in the same field, in which employees will be seconded; at least 25% of the company's turnover, compared to the total, must be realized on the territory of Bulgaria, with Bulgarian contractors, for the previous 12 months or from the moment of starting the activity; at least 25% of the staff employed in the main activity of the employer should continue to work in Bulgaria.
As mentioned, the regulation of the institute is extensive and detailed, and when posting employees of a company should be considered all the conditions and requirements applicable to the case.
16.06.2021
HOW TO FIND OUT IF AN OFFER TO WORK ABROAD IS A SCAM
The labor inspectorates of Bulgaria and France plan to carry out joint / coordinated inspections as part of the pan-European campaign "Rights in all seasons" (# Rights4AllSeasons), announced the Executive Agency "General Labor Inspectorate" / GIT /.
The inspections are scheduled for September. Within them, control will be carried out of French employers who have hired Bulgarian seasonal workers, as well as of companies related to their sending from Bulgaria.
The campaign, already announced by the Employment Agency, starts on June 15, 2021 and will last until the end of October. GIT is the main partner of the Employment Agency for its implementation in our country. The aim is to raise the awareness of jobseekers, workers and employers about their rights and obligations in seasonal employment, as well as to address the need to promote fair and safe working conditions for seasonal workers employed in European Union countries.
The start of the campaign coincides with the period of mass employment of cross-border seasonal workers. IA GIT again reminds job seekers to be especially careful when looking for work abroad. Given the KOVID-19 pandemic, those wishing to work abroad should be aware of the conditions for entry into the host country as part of the anti-epidemic measures. Such information is constantly published on the website of the Ministry of Foreign Affairs.
A signal for possible fraud is if the employer refuses a personal meeting with the employee when arranging the departure and hiring, or such a meeting is held outside the office. Jobseekers should not be required to pay fees and other payments related to the job placement. The documents under which jobseekers sign must be in a language they can understand. Any retention of people's personal documents is a warning that they may fall into a trafficking scheme for the purpose of labor exploitation.
In order to make sure that the employee is in order with the company that sends him, he can check for himself whether it is registered with the Employment Agency as an intermediary company or a company that provides temporary work. For this purpose, he can make a reference on the website of the EA, and the lists are publicly available.
The Labor Inspectorate periodically publishes on its website useful information for jobseekers abroad https://www.gli.government.bg/bg/node/11419. Especially for the campaign a section "European campaign: Rights in all seasons" has been created https://www.gli.government.bg/bg/taxonomy/term/519.
Information on working and living conditions in the EU Member States is also published on the EURES Bulgaria website, and information at European level in connection with the campaign will also be published on the website of the European Labor Authority: https: //www.ela. europa.eu/campaigns/rights-for-all-seasons.
16.06.2021
THE DEADLINE FOR DECLARING TAXES BY SOLE PROPRIETORSHIPS AND COMPANIES EXPIRES
Over 60% of the companies paying corporate tax have declared their revenues to the NRA 14 days before the deadline. Sole proprietors, including patent payers and farmers who have chosen to be taxed as sole proprietors who have already filed income tax returns, exceed 63,000.
The NRA reminds that the deadline for declaring and paying the tax and the final social and health insurance contributions for the persons carrying out activity as a sole trader, as well as the farmers who have chosen this order of taxation, is June 30.
By the end of June, together with their annual tax return, they must submit a declaration form № 6 with the total amount of social security contributions due for the previous year.
June 30 is also the term in which the companies declare and pay corporate tax under Art. 92 and Art. 93 of the Corporate Income Tax Act, tax on expenses, tax on revenues of budgetary enterprises, tax on revenues from ancillary and ancillary activities within the meaning of the Gambling Act, as well as tax on the operation of ships.
The submission of tax and insurance declarations and documents, as well as the payment to the budget, are made online, through the e-services portal: https://inetdec.nra.bg/, with a personal identification code (PIC) of the NRA for individuals or qualified electronic signature (QES).
The Information Center of the National Revenue Agency answers questions from clients by phone: 0700 18 700 from 9.00 am to 5.30 pm on weekdays. The call is priced according to the tariffs of the respective operator.
16.06.2021
WHAT DOES HARASSMENT IN THE WORKPLACE MEAN?
The Labor Code does not contain definitions of "harassment" and "violence" in the workplace, including on the basis of gender, as well as measures aimed at preventing them.
This may change if Bulgaria ratifies International Labor Organization (ILO) Convention 190 on the Elimination of Violence and Harassment in the Field of Labor. Experts will discuss at a forum organized by CITUB and the Friedrich Ebert Foundation the need for Bulgaria to ratify the ILO Convention, BTA reported.
The Convention was adopted at the jubilee 108th session of the ILO in June 2019. For the first time, it formulates and proclaims a new labor law - the right of everyone to work without violence and harassment. The Convention is the first international instrument to protect the worker from such acts.
According to experts, unfortunately, violence in the workplace is still part of the reality of many professions, especially in the field of public services. In a large percentage of cases, violence or harassment is addressed to women. According to the ILO, 35 percent of women worldwide are victims of direct violence in the workplace. A total of 45% of women in the European Union claim to have been victims of one or another case of violence. Between 40 and 45 percent report being sexually harassed in the workplace.
According to a study by the European Trade Union Confederation published in March this year, employers, legislators and law enforcement agencies are not doing enough to tackle violence and harassment in the workplace. Only 23 percent of the women surveyed believe that employers have done enough to tackle violence and harassment in the workplace, including online violence. Only 16 percent say employers have updated their policies to deal with online harassment related to telework during the lockdown.
The same percentage say the laws in their country are strong enough to tackle violence and harassment in the workplace, including online, and 17 per cent believe they are being implemented properly. Most of the respondents indicate that they are very concerned about the problem in both the forms in which it is applied - online and offline.
ILO Convention 190 provides a clear definition of "violence and harassment" as "single or repetitive conduct, practice or threat, aimed at, leading to or likely to cause physical, psychological, sexual or economic harm". The Convention protects employees, regardless of their status, by including cases where the perpetrators are third parties - customers or service providers, and covers the impact of domestic violence on the work climate and process.
The extended interpretation of the definition of "worker" covers all activities that can be defined as work - with or without the traditional contractual relationship - and thus corresponds to the modern reality of a mobile and diverse world of work. The term covers workers also during their leave, trainees, jobseekers, dismissed and suspended, as well as those who are charged with the function of employers or perform the duties of such.
The Convention introduces definitions of "violence and harassment in the world of work" and "gender-based violence and harassment". Art. 127 of the Labor Code does not contain obligations for the employer or other persons to refrain from taking actions that constitute "harassment" and "violence" by virtue of the definition of Art. 1 of ILO Convention 190. There are no similar texts in the Civil Servant Act, as well as in other laws that generally or partially regulate the constitutional right to work.
In the Law on Protection against Discrimination there is a definition only for "harassment", but it differs from the definition in Art. 1 of Convention 190, given that in this law harassment (including that based on gender) is regulated from the point of view of creating inequality, inequality. While in the convention it is related to another special purpose - "causing physical, psychological, sexual or economic harm".
The Convention justifies a number of significant consequences related to harassment and violence. They have a negative impact on the quality of public and private services and can prevent people, especially women, from entering the labor market, staying in the workforce and developing professionally. Harassment and violence in the workplace adversely affect people's psychological state, physical and sexual health, their sense of dignity, their family environment and their social environment.
14.06.2021
THE NSSI ELECTRONIC SERVICE FOR CALCULATING THE ESTIMATED AMOUNT OF THE PENSION HAS BEEN UPDATED
An updated version of the electronic service "Calculation of the forecast pension" is active on the Internet page of the National Insurance. The updated methodology for calculating the individual coefficient for pensions granted with a starting date after 31.12.2018 has also been published.
The new versions of the e-service and the methodology reflect the changes in the Social Security Code, adopted at the end of 20202, and in the Ordinance on pensions and length of service, promulgated in May this year, which defines a new way to calculate the reduction of individual coefficient of the persons who were born after 31.12.1959 and are insured in a universal pension fund.
The changes will take effect on September 1, 2021, and future retirees can now check the approximate effect of their application on the basis of the forecast.
The individual coefficient is one of the elements on the basis of which the dimensions of the pensions related to labor activity are determined. Its reduction reflects the fact that persons born after 1959 are insured for a state pension with a lower amount of the insurance contribution for the "old age" risk, as part of it goes to a universal pension fund in order to receive a second supplementary pension. It is strictly individual and the correction depends directly on the insurance history of the person and his specific periods of insurance.
The new method for calculating the reduction of the individual coefficient, which will come into force from the beginning of September 2021, takes into account:
1) the transfer from the state budget in the amount of 12 per cent on the sum of the insurance incomes of all insured persons for the period from 2009 to 2015, incl. - when determining the amount of the contribution for the "Pension" fund of the state social insurance for the third category of labor, for persons, born on January 1, 1960;
2) the number of months during which the person is insured in a universal pension fund, compared to the total length of his insurance period, defined as the number of months with insurance in the state social insurance, as the months with insurance in a universal pension fund and in the state social insurance are calendar months, for which insurance contributions have been paid or are due.
The changes are aimed at achieving a small reduction in the size of the individual coefficient and, accordingly, a higher size of the pension.
14.06.2021
ENTREPRENEURSHIP: WHAT ARE THE QUALITIES OF THE ENTREPRENEURS OF THE FUTURE?
Entrepreneurs of the future should not have a big ego, they should be able to accept criticism constructively, make decisions quickly and be able to change these decisions even faster and adapt them so that they are more effective. These are some of the conclusions that brought together the top experts who participated in the discussion of the conference "Entrepreneurs of the Future". They were adamant that the idea, while important, was not the only fundamental part of creating and developing a successful start-up business.
"Investors are looking at the idea, but entrepreneurs must constantly change it until it is right," explained Angel Ivanov, co-founder of the popular gourmet burgers chain Skapto. According to the executive director of Bulpros Consulting Ivaylo Slavov, entrepreneurs should seek and accept constant feedback and criticism from their trusted people. "It is very important to have a mentor and a person whose criticism you can trust to get better," he said.
"In order to work with people, you have to put your ego in your back pocket and have a winning solution," commented Krum Alexiev, director of the Corporate Clients Department at UniCredit Bulbank. The expert from UniCredit Bulbank was also the first to give valuable advice on financing a start-up business.
"When the business starts and is in the start-up phase, in the idea phase and the product has to be validated, then the usual practice is for its owners to maintain it and provide it with capital. They invest in the idea and sustain it until it begins to generate cash flow that is large enough to service debt. This is the moment when the product has already been validated, there are end customers and the owners can turn to debt instruments to obtain financing for further business development, "he explained.
According to him, currently the environment in Bulgaria is extremely favorable for access to finance, adding that international financial institutions such as the European Investment Bank and the European Bank for Reconstruction and Development (EBRD) provide great support to banking institutions for a resource that is then provided with warranty instruments without significant collateral.
However, Dr. Petar Duchev, chief physician and managing partner at the Petar Duchev Dental Clinic, was of a different opinion. According to him, securing financing continues to be a challenge for entrepreneurs, unless their business is related to the IT field. He himself gave the example that it took him 3 years to find funding for the expansion of the first clinic in the chain.
Another interesting point of view was given by the co-founder of Skapto. He defined entrepreneurship as a game of motivation, and according to him, financing with own funds has a significant role on motivation. "We have always relied on our own resources and I think that our motivation to develop is greater," he said.
The executive director of Bulpros Consulting Ivaylo Slavov revealed that in the beginning their company was financed with its own funds. "We have created an ecosystem, we have changed the environment of funding. 12 years ago you were only with relatives and friends, now there are more opportunities if you have ideas. The most critical are the venture capital funds - from angel investors, venture capital and bank capital, "said Slavov.
The participants in the discussion also commented on an interesting trend about the impact that COVID-19 has on the business sector. Krum Alexiev explained that the number of entrepreneurs who accept the COVID-19 crisis as an opportunity has increased. He added that currently many young entrepreneurs decide to invest in starting their business with the argument: "when, if not now".
Ivaylo Slavov also shared his opinion. According to him, after the Covid crisis there is a shortage of original ideas. And on the topic of original ideas, everyone was adamant: young entrepreneurs must constantly adapt their project idea to meet the dynamic circumstances, markets and needs of customers. The four were also unanimous on what the entrepreneur of the future should be like: socially responsible, creative, modest and flexible. To be constantly educated and upgraded, to use the sea of information to their advantage and to realize that failure is not a disgrace - these were some of the valuable advice that the participants gave from the stage of "Entrepreneurs of the Future".
The second part of the conference was just as interesting - including six fireside interviews between young entrepreneurs and proven experts from the entrepreneurial ecosystem in our country. The mentors who came on stage to share their invaluable experience were Genoveva Hristova, entrepreneur and managing partner in LIGNA GROUP, Viktor Manev, co-founder and partner in Impetus Capital, Dimitar Dimitrov - CEO of Alterco, manager of Cocoon Mediacal Snezhana and Daniel Laurer, managing partner at BrightCap Ventures.
In front of the audience in the hall of "Entrepreneurs of the Future", as well as in front of the viewers of the live broadcast on the channels of Investor Media PRO and Investor.bg, the six mentors met with the teams of six promising startups and talked to them about attracting investments, new markets, proper project marketing, creating a successful business strategy and many other topics.
You can see what they are in the recording of "Entrepreneurs of the Future" on the digital event platform Investor Media PRO, where the conference was broadcast live on June 10.
11.06.2021
WORKING CAPITAL SUPPORT FOR SMES CONTINUES
From June 14, 2021 the third phase of the working capital support program for the businesses affected by the anti-epidemic measures has started. New BGN 55 million are provided for the provision of working capital through grants under the Operational Program "Innovation and Competitiveness" 2014-2020. So far, nearly BGN 120 million have been paid under the first two phases of the program, added the NRA.
The third phase of the program is related to the extension of the working capital support of the companies with suspended activities or sites for the periods from 22 to 31 March 2021 or until different dates in April 2021, according to the orders of the Minister of Health. The application forms for the third phase are submitted again electronically through the Portal for e-services of the NRA and e-service "Submission of documents for support through working capital for SMEs affected by the temporary anti-epidemic measures". The application deadline is June 22, 2021.
The NRA advises the candidates who want the verification for eligibility of the indicated codes of economic activity, according to NACE.BG-2008, to be performed according to the data from the annual reports on the activity of enterprises for 2020, to submit their reports to the NSI before applying for support. through working capital for SMEs.
Additional explanations about the applicable application periods, deadlines and forms for participation in phase three will be available in the specialized section "Support through working capital" on the website of the NRA from Monday next week. Clients can also receive information and assistance by e-mail infocenter@nra.bg or on the information phone of the National Revenue Agency 0700 18 700.
11.06.2021
HOW TO ORGANIZE YOUR FINANCES DURING A CRISIS
Taking care of personal finances is fundamental if we want to lead a happy and balanced life. This means that this care must start from the moment we start handling personal funds, earning money and distributing it according to our desires and needs. In this way we learn to manage our finances in unpredictable circumstances.
Let's look at the possible options for action in cases where we find ourselves in a situation of economic crisis - a personal financial crisis or a crisis in the environment around us. We will go through the steps we can follow to successfully organize our budget.
Surely most of the following things have happened to most of us:
- We try to save on our monthly income, but we fail because something always "emerges" and we postpone for the next month.
- We live from salary to salary.
- We feel a "shortage" of money, but when we increase our monthly income, for example through better paid work, we continue to have the same feeling and our financial situation does not change much.
In order to overcome these and other similar obstacles to the "recovery" of our finances, we must first be aware of what money means to us.
It is important to try to analyze how we perceive money and what role it plays in our lives. This is extremely important, because if we do not know our own attitude, there is no way to change and improve it. Here are some guiding questions we can get to know ourselves:
- What was the attitude to money in my family ?;
- What is my attitude to money today?
Before answering the questions, we need to think very carefully about whether we perceive money as a source of anxiety or an end in itself, and how often we think about it. Some people only think they have a financial problem when they are at a dead end. By answering these questions honestly, we are taking the first step toward enriching our financial culture and learning about our attitudes toward money.
Once we understand what money is for us, we can proceed to build a personal budget. It is a concept that, in addition to tracking income and expenses, includes the already mentioned attitude towards finance and gives us a broader perspective.
For starters, we can start with a simple tracking of income and expenses. The main goal, of course, is not to spend more than we earn. Various types of applications are now available that facilitate the process of tracking spending. Using a very simple table can also bring good results. The important thing is to be consistent in keeping records and to build habits that work for us.
Another tool that helps in the organization of our finances is setting a financial goal. It can be short-term - for the next few months or a year, or it can be long-term - for the next five, ten or more years. It is important that the goal is as specific as possible, achievable for us and that it is bound by a deadline.
Examples of financial goals are debt repayment (consumer loan, mortgage, etc.), saving for the purchase of an object (car, telephone, etc.), saving for education or retirement, building the habit of saving, creating an investment portfolio, etc.
Setting a financial goal helps engagement and motivation. In addition, it further encourages us to consider the way we spend. In times of crisis, it is extremely important to manage our funds without succumbing to impulsive decisions such as unnecessary quick purchases. Although they bring short-term satisfaction, they have a negative long-term impact on our financial routine.
The next step, which is essential for the successful management of our finances, is to achieve a good level of financial literacy. This includes basic knowledge of macroeconomics, knowledge of processes such as inflation, basic market functions and trends, investment opportunities. The Finance Academy accepts financial education as a mission through which to achieve sustainable improvement of the quality of life in our country. The goal is to achieve better financial solutions and build appropriate habits. Thus, the effect of a crisis on our daily lives could be minimized without turning our world upside down and making us make big and uncomfortable changes.
In the Investment and Personal Finance Program at Finance Academy you will find successful strategies for managing your personal finances, how to successfully save and invest.
