In Switzerland, the declining purchasing power over the past two years has raised concerns about the feasibility of saving money. Judith Granat, director at Retraites Populaires, emphasizes the importance of budgeting to combat overspending, which frequently enough goes unnoticed. She advocates for the 50-30-20 rule: allocating 50% of income to essential expenses, 30% to leisure, and saving the remaining 20%. Granat notes that building savings is a gradual process, and personal finance expert Janice Kerschbaumer also shares her “budget coaching” method to help individuals manage their finances effectively. For those looking to enhance their financial literacy, the latest episode of Le Point J offers valuable insights on creating a financial cushion in challenging economic times.
Time.news Interview: Navigating Financial Challenges with Judith Granat and Janice Kerschbaumer
In the face of declining purchasing power in Switzerland,effective budgeting has never been more crucial. Time.news editor engages with Judith Granat, director at Retraites Populaires, and personal finance expert Janice Kerschbaumer to discuss practical strategies for savings and financial management.
Editor: Judith, with the recent decline in purchasing power, many Swiss residents are worried about their financial stability. What does this mean for saving money today?
Judith Granat: The decline in purchasing power has indeed raised legitimate concerns. It highlights the necessity of budgeting to combat overspending, which often goes unnoticed. A systematic approach to spending can help individuals maintain control over their finances, even in challenging economic conditions.
Editor: you advocate for the 50-30-20 rule as a solution. Can you explain how this budgeting strategy works?
Judith Granat: Certainly! The 50-30-20 rule suggests that individuals allocate 50% of their income to essential expenses—such as housing, food, and transportation—30% to discretionary spending or leisure activities, and the remaining 20% to savings and investments.This method is designed to create balance, ensuring that basic needs are met while still allowing for personal enjoyment and future financial security.
Editor: That sounds pragmatic. However, for many, saving money can feel overwhelming. Janice, how does your “budget coaching” method fit into this scenario?
Janice Kerschbaumer: My coaching method emphasizes personalized financial planning.It’s about helping individuals understand their spending habits and making informed choices. We often start by analyzing current expenditures to identify areas where they can make adjustments. Such as, someone might find that they’re spending excessively on dining out, which can be redirected toward savings without feeling deprived.
Editor: Judith, you mentioned that building savings is a gradual process.What practical steps can people take to start this process now?
Judith Granat: I recommend starting small. Individuals can set a target savings goal and automate transfers to their savings account after each paycheck. This makes saving less daunting and ensures it becomes a regular commitment. Additionally, reviewing monthly expenses regularly helps in identifying potential savings avenues.
Editor: With the current economic context, what other resources would you recommend for enhancing financial literacy?
Janice Kerschbaumer: For those looking to improve their financial skills, the latest episode of Le point J is a fantastic resource. It offers insights on creating a financial cushion, especially in tough times. Engaging with such resources can empower individuals to make smarter financial decisions.
Editor: Thank you both for your valuable insights. navigating the complexities of personal finance, especially during times of economic stress, requires a proactive and informed approach. By adopting structured budgeting methods like the 50-30-20 rule and seeking personalized guidance, Swiss residents can enhance their financial resilience.
Judith Granat: Exactly. Embracing these strategies can lead to a lasting financial future.
Janice kerschbaumer: And remember, taking the first step is crucial. Financial health is a journey, not a destination.