In the context of the economic crisis that has engulfed many countries, the issue of savings is particularly acute. Even if you are not experiencing financial difficulties, you have probably already had the opportunity to save money for a desired purchase or trip. If you train to save a certain amount every month, in a few years you will become the owner of a good capital. Elgreloo.com will tell you how you can save money and save a decent amount.
Where does the most money go?
Everyone knows the situation when there were no significant purchases, and a large amount was sold very quickly. After analyzing the monthly costs of the average person, financiers came to the conclusion that most of the budget is spent on “minor” costs»:
- Coffee-if you buy coffee, even 2-3 cups a day for a month will give a decent amount;
- Snack-when there is no time or desire to cook, many prefer sandwiches, snacks, rolls and other unhealthy products that are more expensive than a dish prepared by themselves;
- Travel by public transport is especially important for residents of megacities, whose transportation costs take a large part of their income;
- Payment of the commission for using a bank card – we advise you to calculate how much additional funds are charged daily for withdrawing money from an ATM, paying for purchases, replenishing the mobile and other banking operations;
- Tobacco products – on average, a smoker buys a pack of cigarettes every other day, and their price tends to constantly increase.
- Of course, this list does not mention the payment of rent, utilities, necessary food – such expenses are mandatory and we must take them into account.
To stop funding your ruin and learn how to save money, you need to know clearly where you are spending it. A certain group of costs is inevitable, but you have the power to get rid of waste and unnecessary overpayments.
How to learn how to save money and plan your budget?
Here we will give you tips on how to properly plan your budget, get rid of unnecessary budgets and save money. These tips will be effective only if you really intend to save money and are ready to reconsider your financial habits.
Develop a solid budget
First, make a list of all the required expense items and calculate the amount of money needed to cover them. You should not knowingly write a lower amount, referring to savings-if you have not been able to invest in a smaller budget before, it will take time to learn it. Part of the remaining amount should be allocated for unforeseen expenses – such as: unplanned repair of the refrigerator, purchase of new shoes for a child, illness, etc.What remains (if any) should be set aside. If your budget can only cover costs and does not allow you to procrastinate, Rule # 4 will tell you how to make a difference.
The rule of four envelopes
This is an alternative method of budget planning that has received quite positive reviews. It consists of the following:
- From the total amount of income, you need to subtract 10% of the planned financial investment – the one for which you began to save money. It is better to put this money on a deposit so that there is no temptation to spend it on current expenses at the first need;
- Of the remaining 90%, it is necessary to subtract the amount of mandatory expenses (rent, food, travel, etc.).);
- What remains as a result of these operations should be divided into 4 parts and distributed among the envelopes. This way you get a budget for the week.
This method is good because it clearly shows how much you can spend. In addition, exceeding the budget will allow you to make even more savings next week – it will teach you to be careful with your money.
Record all your expenses
You’ve probably heard about this rule more than once-and for good reason. First, it is impossible to budget correctly without taking into account costs – you will not know how much money is needed to cover costs. In addition, in this way you can see what they are for – we ignore some purchases, considering them insignificant, while they become a significant item of expenditure and do not allow us to save money.
Check the terms of your ISP and mobile carrier
Every month you give a certain amount for these services, but are you sure that you can not pay less? Perhaps when you started using them, the options you chose were indeed the most advantageous. However, the long-term presence of a company in the market and its growing popularity often lead to an increase in the cost of services, while newly created companies can provide the same services on more favorable terms. If you do not want to change providers, look at the information about the new tariffs – they may suit you more, but you will have to pay less.
Large supermarkets offer promotions and discounts for all product groups. As a rule, they are short-lived and it is important not to miss them. To make it easier to track prices, find a special site that contains all current promotions in stores in your city. For example, the site rasprodaga.com.ua contains information about all current promotions and a discount in Kiev – you will find a similar one for all major cities. So you can save on food, clothes, household chemicals and household appliances.
This money-saving rule applies to the purchase of clothes and shoes – in winter you can buy summer clothes at a very favorable price, and in summer – winter boots and outerwear. There is one drawback here – as a rule, only the slowest sizes reach the sale. However, there are always exceptions that save your budget accordingly.
Pay attention to the commission of using a bank card
Nowadays, most organizations pay their salaries on their bank card. The advantages are many – you do not have to stand in line at the accounting department and in case of loss of the card, you can restore it by keeping all the funds on the account. However, the commission charged for withdrawing money at an ATM, paying with a card in a store, recharging a balance on a mobile and other operations accordingly takes away the bulk of your salary, even if it is only 1%. Be sure to calculate how much money you will lose if you withdraw the entire amount in one go and how much it will take to pay the commission permanently – it may be more expedient to resort to the first option.
The best tips to save money
Set a goal. First you need to understand for yourself why you need to save money. If “just in case”, it doesn’t motivate you enough. Everyone is able to make unforeseen purchases. This is the reason why it is not possible to accumulate the required amount. It is important to focus on one thing, whether it is buying a new phone, an apartment or a trip abroad. Seeing in front of you what you want to save money for, it will be easier to achieve the chosen goal. This process can even involve you for a long time.
Set time limits. Once you have decided on your goal, think about how long it will take you to accumulate the required amount of money. Also keep in mind your financial capabilities. For example, let’s say you decide to save for a TV. So, here, fix yourself and the time necessary for this. Let it be 4 months. It is during this time that we must manage.
- Decide how much you will save. Now you know what you want and what time. All you have to do is determine how much money you will save each day, week or month. For example, you decide to save 36,000 rubles a year for a laptop. It turns out that you need to save 3,000 per month. A simple mathematical calculation will help you save money.
Prioritize your needs. What more do you want, an e-book or a new mobile phone? You can only choose one. Otherwise, you would not have a problem with accumulating money. Depending on your needs and capabilities, make a choice in favor of a single product.
Reduce your expenses. This follows from the above rule. To have a certain amount of money in the future, you need to reduce your expenses today. Surely there will be such costs that can be considered empty. Without doing them, you can save a lot. For example, every day at lunchtime you have lunch in a cafe. You can take food with you from home. This will save you a decent amount. Yes, and home-made food is healthier.
- Stop using credit cards. First, these cards have very high interest rates. Secondly, with a card in hand, you will spend much more than with cash in your wallet than you expected. Real money in hands has more value for its owner than a plastic card. If only because you can see and count them.