How to Safeguard Your Finances in a Crisis
The ongoing energy crisis is raising prices across the board, affecting people's finances even when incomes remain unchanged. According to financial planner Yulia Babenko, simply holding onto cash during a crisis can backfire as currency devalues over time. This is particularly relevant for Ukrainians, given their economy's sensitivity to external energy resources and fluctuating prices.
To protect their wealth, Ukrainians should consider several financial instruments:
- Government Bonds: Offering an annual yield of about 15-17% in the local currency and 3-4% in USD, they focus on preserving funds rather than wealth growth during tough times.
- Flexible Fixed-Income Securities: These provide a fixed interest rate and enable quick access to funds, with average returns currently around 15% per annum in local currency.
- ETFs: Exchange-Traded Funds offer diversification and can average 8-10% annual returns in USD, although returns are not guaranteed and depend on market conditions.