ENTREPRENEURS: HOW TO OPTIMIZE YOUR SAVINGS? [THE COMPLETE GUIDE 2024]

Choosing where to save your money when you are an entrepreneur is essential and yet, not all entrepreneurs take the time to look into the issue.

I’m Ilhem, I’m part of the LiveMentor team, and I’m looking for the best solutions to help entrepreneurs. In today’s article, I’m talking about a savings solution to make your money work for you.

Cashbee is an application that allows you to manage and invest your savings easily and intelligently. 

There are basically four ways to get rich: work hard, inherit, win the lottery, or make your money work for you. And that’s where LiveMentor’s personal finance training will come in handy.

We suspect that if you are reading this article, you are fully focused on the first one. Your entrepreneurial project is your life. Many entrepreneurs can easily spend more than 12 hours a day, and a good part of the weekend, running their business . 

As a result, there is little time left to devote to the fourth way: optimizing savings. And then do we really want to devote the little free time we have left to “doing paperwork” and immersing ourselves in an opaque world, full of barbaric acronyms, like PEA, SCPI, ETF, ISR, flat tax and so on?

Good reading !

1) THE POWER OF SAVINGS!

Yet it is a powerful way to:

  • increase your income , 
  • build up a financial emergency fund , in case your professional activity goes through a difficult period, or requires a working capital requirement and 
  • prepare for retirement (another vast subject that we don’t think much about when we have our heads in control on a daily basis).

Let’s take a simple example: €100,000 placed in a bank book (currently at 0.10%) will be worth approximately €101,000 after 10 years and €102,000 in 20 years. Suffice to say that with even very low inflation, you will have lost purchasing power.

This same amount, placed on a 5% return, will represent more than €160,000 after 10 years and more than €260,000 after 20 years. So it’s worth looking into the subject!

And that’s good, because helping the French save more and better is the mission that our friends Marc Tempelman (former investment banker), Cyril Garbois (former strategy consultant) and Chaker Nakhli (still a doctor in computer science and CTO) have set themselves by creating the fintech Cashbee in 2019.

Their (free!) app provides some quick and easy solutions that we should all adopt to save money, and most importantly, to make it work for us. And this, whatever your monthly income!

2) WHAT EXACTLY IS CASHBEE?

Cashbee was born from a paradoxical observation: on the one hand the French are the champions at putting their money aside, but on the other they don’t really know how and where to put it. The result is that more than 1,000 billion euros are found today in accounts with little or no interest, such as current accounts or Livret A accounts.

During the recent confinements alone, the French have added more than 100 billion to these dormant savings. Cashbee is the simple savings platform that helps you save efficiently, securely and responsibly. 

3) HOW DOES CASHBEE WORK?

First, a paid account!

The Cashbee app allows its users to put their dormant money to work in less than 5 minutes, by opening — free of charge and from their smartphones — a current savings account, in their name, in a French bank.

This account pays 2% interest for 3 months*, then 0.6%, with no limit on the amount. This is an undeniable advantage over the Livret A, capped at 22,950 euros per person and which pays 0.5% interest (net of tax). And a huge advantage over the current account, which pays no interest! 

Once registered, the Cashbee user can at any time put aside money in his Cashbee account (and thus earn interest) or, on the contrary, withdraw the savings and return them to his current account if necessary. Transfers are also free, because Cashbee is paid by its partner bank, My Money Bank.

*The 2% bonus rate applies up to 75,000 euros

SAFETY FIRST !

Note that the savings thus constituted are perfectly secure. The saver’s money is always in an account in his name. My Money Bank is a French bank, very comfortably capitalized and regulated by the Bank of France.

In addition, deposits are covered by the Deposit Guarantee Fund, which ensures the reimbursement of deposits (up to a limit of 100,000 euros per customer) in the event of a bank default. Cashbee is also regulated as a payment institution. Its IT systems and procedures are therefore subject to the highest security standards applicable to the financial sector. 

THEN, MORE DYNAMIC INVESTMENT SOLUTIONS OFFERED BY CASHBEE:

In addition to the remunerated account, ideal for everyday savings — those that must be available quickly — Cashbee also offers solutions for long-term savings. Via the same app of course.

A 100% mobile and responsible life insurance contract.

Starting with Cashbee+, the first 100% mobile and responsible life insurance contract. In just a few minutes, users can subscribe to one of the 5 Cashbee+ profiles, all made up of funds labeled Socially Responsible Investment (SRI), according to their convictions:  

  • Cashbee+ Climate for those who wish to contribute to the fight against global warming
  • Cashbee+ Inclusion for those who want to boost inclusion and social equity
  • Cashbee+ Tech who wish to focus on technological innovation serving the planet
  • Cashbee+ Impact for those who want to combine the three themes above
  • Cashbee+ for those who do not wish to color their investments (while remaining SRI)

These contracts are opened with the insurer Generali, and the savings entrusted are managed by their experts. But within the framework of the guidelines that you have set, through your choice of profile. And taking into account your personality as an investor, according to three axes: your knowledge of finance, your taste for risk and your investment horizon.

AND/OR A PLACEMENT IN STONE

Still in the logic of helping users to better diversify their savings, and in order to make investment in real estate accessible to the greatest number, Cashbee+ Immo has come to enrich the shelf. It allows to invest in stone-paper, through two Collective Investment Organizations in Real Estate (OPCI), one labeled ISR, the other in the process of labeling.

Unlike buying an apartment or a building, you don’t need to be a millionaire to get started. A thousand euros is enough to subscribe to Cashbee+ Immo, which offers portfolios of real estate assets designed by BNP Paribas and Sofidy (a subsidiary of Tikehau).

AND ALSO A SOLUTION FOR CORPORATE TREASURY: CASHBEE PRO

If personal current accounts are not remunerated, company current accounts become more and more expensive. Account maintenance fees are constantly increasing (what are these fees for anyway?) and some banks even go so far as to charge deposits above a certain amount – the equivalent of a rate of negative interest.

Cashbee, which counts many entrepreneurs, freelancers and liberal professions among its customers, recently decided to also tackle this problem. By designing Cashbee Pro.

FLEXIBLE AND REMUNERATED TERM ACCOUNTS ON CASHBEE

Via Cashbee Pro, legal entities can open one or more term accounts from 20,000 euros and thus put their cash to work, without taking any risks. Because here too, the funds end up in the coffers of Cashbee’s partner bank, My Money Bank. 

The maturities offered range from 6 months to 5 years, with interest rates which increase with the maturity chosen, from 0.20% to 0.45%. It may not seem like much, but it’s always better than nothing (or even less than nothing)!

And just because you have placed your cash in a term account does not mean it is frozen. In fact, in the event of an unexpected need for cash, you can “break” the account and request a refund of the funds in it. They will be returned to you 31 days later. The interest rate will be reduced to reflect the early repayment, but will remain positive. 

Please note: when you interrupt a term account, it is necessarily for the entire amount. So if the amount to be worked on is large, you might as well place it in several term accounts. If necessary, you can then break one or two of the contracts, while letting the others run.

The icing on the cake is that Cashbee Pro is free for the user because, here too, Cashbee is paid by the bank.

RIGOROUS FUNDAMENTAL PRINCIPLES

All of the savings solutions offered by the application always meet three fundamental principles: 

  • Simplicity: 100% mobile experience to open, monitor and manage your savings pockets. A few clicks are enough to transfer money from one investment to another, or to bring it back to your current account, according to your desires or needs, and always free of charge
  • Flexibility: savings always remain accessible. At any time for those on the interest-bearing account, within 72 hours for Cashbee+ and Cashbee+ Immo, and within 31 days for Cashbee Pro term accounts. Ten euros are enough to open the Cashbee booklet; Cashbee+ and Cashbee+ Immo are accessible from 1000 euros. For Cashbee Pro a minimum of 20,000 euros is required. 
  • Responsibility & profitability: the founders of Cashbee are convinced that profitability and responsibility can and must go hand in hand. Let’s be clear, investment solutions primarily aim for financial performance. But they are combined with a sustainable approach, making it possible to give meaning to savings, according to each person’s convictions.

4) WHAT FEES FOR USERS ON CASHBEE

The Cashbee remunerated account as well as the Cashbee Pro term accounts are completely free for users. There are no fees. Cashbee is remunerated by its partner bank to which the deposits it needs are provided. 

For Cashbee+ life insurance, there are no entry, transfer or exit fees. However, the insurance partner Generali charges between 0.75% and 1% in annual contract management fees, of which Cashbee receives a portion.

For Cashbee+ Immo, there are additional entry fees of around 3%. These are so-called “fund-acquired” fees that are used to pay the costs associated with property purchases, such as notary and registration fees.

MORE SUPPORT!

To summarize, the Cashbee app allows you to build, at your own pace, a balanced and personalized portfolio for all your savings: 

  • daily savings , in the Cashbee savings account, remunerated, perfectly secure and always available;
  • project savings , via Cashbee+ and/or Cashbee+ Immo life insurance, invested responsibly, aiming for long-term financial profitability, but which remains available;
  • and corporate treasury via Cashbee Pro , which puts your excess cash to work, while you focus on managing your entrepreneurial project .

All savings pockets are controlled from a single app, which also allows you to automate your savings efforts. In addition, Cashbee alerts you when your situation is conducive to saving more.

Finally, you will receive the Cashbee newsletter monthly, which brings together the best articles from their blog, The Interest, which sheds light on the economy and finances. We can tell you, we who hate paperwork and who distrust the world of finance, we love it… and we enrich our financial culture without forcing ourselves too much.

This article is part of our Personal Finance training .

If you want to learn more about investing, we have other articles on this topic, such as how to do crowdlending .

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