After a decade and half working on the capital markets, banking and insurance markets, I personally became convinced of the level of financial literacy in our society. I could say that the financial literacy of our society is at the level of the roads’ quality, the development of the economy, the level of the living standard. So, we all know it can be much, much better.
As an economist, I thought I would not be complete unless I had experience in all three areas of finances. After fulfilling this desire and gaining experience in the financial market, I am capable to understand much better the wider picture of the changes in this field.
In recent years, my job involves daily contact with people. I found out that there are different types of personality when talking about financial responsibility. And that is actually the part, which was a ‘trigger’ for writing this blog.
I am delighted to meet with intelligent and innovative people who are changing the world for the better. These people are usually financially responsible. In addition, they are very smart, noble, they care about their family, environment, business partners … It often happens that after such person leaves – I open my notes and write down a few lines that inspired me in the interview for an action and personal examination.
There are no such people too many, unfortunately.
There is another type of people concerning the financial responsibility. Those who regularly buy by instalments. They belong to a group of emotional customers and complain that they often do not have enough money at the end of the month. There are many of them. So, they can be super persons privately, they can be quite successful at work, but at the same time they are financially irresponsible. And because of that, sooner or later, they have got a problem! Financial matter, of course.
The third type of people are those that possess enormous human potential, exceptional potential for profit, innovation and business success…However, they do not increase or retain the earned money, they mainly spend it all with high lifestyle costs. In spite of their enormous potential, these people lead themselves to the position that they must work hard every month for all monthly payments. Because, nonchalant lifestyle needs to be financed. With more flexibility and self-work (changing some habits), this type of person can do ‘miracles’ in every sense of the word.
The motive for blogging is the desire for a positive impact on the low level of financial literacy in the society. It is irrelevant whether you are a student, a doctor or a hairdresser, we all need financial knowledge. We all use cards, loans, online shopping, we all register cars, save money and so on.
When you do not know something, then you pay a higher price for it. Here are some examples:
- Do you know that if you make payments at the bank until 13:00h – you pay one commission fee, and after that hour, the higher amount of the commission is calculated for the same transaction?
- Do you know that e-banking is usually twice cheaper than making payments at the bank counter?
- Do you know that if a natural person saves money through a life insurance policy, he/she does not pay income tax? If you save money at the bank, you will pay the income tax, at the end, before the disbursement.
- Has it ever happened to you that you are a client of Bank X, then you go to Bank Y cache machine to take money and pay a commission of 3.50€ – 5.00 €? These are usual commissions. Use the cash machine of your bank!
- Did you know that it is better to pay some monthly household bills (up to a certain amount) in the Post Office than in banks, because of less commission?
- Do you know that you can buy shares of Tesla, BMW, Nintendo, Daimler from Montenegro, Serbia, Bosnia, Macedonia, the Republic of Srpska (for now, these 5 countries are in my business focus)?
- You probably know that the average pension in Montenegro currently amounts to € 288? In case your employer does not pay full contributions, but minimal, your pension will be around €140. From such pensions, you should be David Copperfield to live. For those who do not know who David Copperfield is, take a look at the link.
I am going to deal with these and similar topics on the blog and I will try to make easier the comprehension of concrete products and services in the financial market.
First of all, I am addressing to the generation of Millennials and ‘those who feel so’ 🙂
Stay tuned!