How to invest your money well?

In the era of Netflix and TikTok it took a web series to explain the ABCs of financial education. A project by the European Commission and the Committee for financial education activities proposes eleven short “sitcoms” set in a condominium, where Diego, a nice dad who is an expert in Economics, helps the other tenants juggle the mortgage for the purchase of the home, the
investments and their business projects.

The video series is just one of the educational tools available on the site quelcheconta.gov.it.

We asked the economist Mario NavaDirector General of the Directorate for Reforms of the European Commission, a reflection on the topics covered in those episodes of the sit-com.

Let’s start with the first salary. What should be done?
«The first salary of our life is a crucial moment, usually accompanied by great enthusiasm. A certain euphoria can ensue in spending the money earned. Often the initial contract of the new employee is not stable and the situation becomes complicated if you have to open a VAT number. The first tip is to draw up a future forecast plan, forecast income and expenses and check them regularly. The second step is to calculate the amount of taxes, social security contributions, to understand at the end of the month when it will remain in our pockets for our purchases, to develop projects, plan unexpected expenses and start saving “.

In these videos, at some point there is also talk of starting a new business. How should you move?
“In the meantime, we need to think that permits are needed, a production plan for at least a year, a clear prospectus. Furthermore, it is necessary to identify the main investor who will evaluate the “risk” of investing in the project. In the beginning, it may be important to network and enter into agreements with the distributor of any product or service. Moreover, which is not easy, it will be necessary to negotiate affordable prices ».

Then there are investments: what to do to invest your money well?
“There are many questions to ask: what are the objectives we want to achieve and in how many years will we succeed? How much are we willing to risk? Which products are best suited to our needs? Is it true that with bitcoins you get rich? What questions need to be asked? It is necessary to consider that the higher the return, the greater the risk. For the investor, the advice is to diversify: never put all your eggs in one basket! ».