Saving money for a modern person is difficult: there are many temptations and things around that, at first glance, seem necessary. And I want to buy them here and now. Therefore, it is quite difficult to acquire savings. However, if you follow certain habits and methods, then you can quite easily understand how to learn how to save money.
1. Set aside a certain amount regularly
We need to make a habit of withdrawing a fixed amount of funds from the budget and letting them accumulate. At first it will be difficult to resist the temptation to spend the treasured stash, but over time it will become easier. As soon as you understand that it has become easy to “part” with the indicated amount, you can increase its size. This method will allow you to quickly create a “airbag” and start saving money for large purchases. The most important thing is to do it regularly, without postponing the date of the next replenishment of the “piggy bank” from advance to salary.
One of the human qualities is the unwillingness to deny yourself today for tomorrow..
If there is a desire to save money, you need to overcome your impulsive desires. Otherwise, deferring a certain amount will never work.
Irina Zhigina, financial literacy consultant, Project of the Ministry of Finance of Russia, says: “Imagine that you need to set aside 7 thousand rubles. This can be done with the proceeds to the account that you receive today or which you will receive in a month. It is logical to postpone 7 thousand from the current payday, but sometimes we decide to do it next time. And then again “forget” to save money.
The economist Shlomo Benarzi offers his own way: “Save more for tomorrow.” The essence of this method is to save a larger percentage with each increase in income. For example, your monthly income is 70 thousand rubles. Start putting aside a minimum of 1–5% of this amount. With an increase in revenue – increase the percentage of deductions to 7-10%. Revenue Increased Again? Start saving another 3-5% more. The idea is that by making small deductions, we overcome our fear of limitations. Our thinking is gradually getting used to the systematic increase in amounts and the accumulation process is becoming a habit. ”.
Anfisa Egorova, head of the Obedient Money club, comments: “It is important to plan how much you will save each month. To save, for example, 10,000 rubles every month for a year seems more real than to set aside 120,000 rubles at a time at the end of the term.
It is also important to simplify and automate the process of accumulation. The auto-transfer configured in the Internet bank helps a lot when the automatically determined amount or percentage is transferred from the salary to a separate savings account. Without your participation. Without too much discussion. Right away.
It is important to work out regularity. It should be an iron rule with no exceptions in the format “Perhaps now I will not postpone anything, but next month I will postpone 2 times as much right away”.
The discipline is important here. And if your discipline suffers, you need to make it difficult for yourself to access the accumulated money, so that standing in the store at the cash register you would not be able to transfer the entire amount to the card and spend it by pressing a pair of keys. Set limits, block a card or open a deposit in a bank that cannot be withdrawn instantly. ”.
2. Open a replenishment account
Even if certain savings are already available, the temptation to withdraw money from the account or pull it out of a secluded place and spend it on purchases is too great. Many are unable to cope with such a test and constantly spend pending. To avoid this, you should resort to the services of the bank and open a special deposit that does not allow you to withdraw money until a certain time. So you can protect your savings from your own impulsive impulses and accumulate a decent amount, which is enough to make a really big purchase.
Natalya Sevastyanova, trainer, coach of the Academy of Life Management, said: “Learning to save money is easy and difficult at the same time. How many times have I heard that income is so small that there is nothing to save! Well, set aside only 1,000 rubles this month, next 1,000 rubles as well. I’m sure that after 3-4 months you can easily postpone already 2,000. Set aside so that it is not possible to withdraw: open a separate bank account, which can only be replenished. As your savings grow, so will your income. ”.
A similar opinion is shared by Tatyana Surzhikova, consultant on financial literacy of yourfinance.rf project: “Put the accumulated amount on a deposit in a bank. Not for interest. For the sake of saving from a spontaneous desire to spend “.
You can also resort to the help of a person whom you trust unconditionally and transfer money that goes to savings to him. Although this option is not as reliable as a bank deposit, it has its own advantage: if force majeure has come and funds are needed here and now, you can safely withdraw them.
3. Analyze expenses
People who, as part of the formation of financial literacy, have been taught by their parents since childhood to keep their own budget, taking into account income and expenses, save up much better. This is due to the fact that they are used to analyze monthly cash receipts and correlate them with their needs, isolating the surplus. The latter and go to the formation of savings.
It is never too late to acquire such a habit. Moreover, now there are many automated programs that help maintain a budget. And if you follow the advice of Tatyana Surzhikova, then everything becomes even simpler: “Analyze your expenses for the month, draw conclusions on what you can and should save, what can be the amount of savings. Compare the cost of your financial goal and the amount of savings, so you determine how much time it takes to save. Determine the amount sufficient for the needs of the week. Lay out the money for a month in 4 envelopes – each exactly the amount that can be spent per week. The remainder, whatever it may be, accumulate ”.
4. Give up loans and lending
Give up any debts. Favorable conditions and the ability to easily get money right now as part of a bank offer are nothing short of a long-term trap. For the satisfaction of one need will have to pay for quite a long time. Loans usually pull the lion’s share of the budget, not only allowing them to accumulate, but also to exist comfortably. Therefore, people who decide to create their own “piggy bank” need to stop borrowing money.
Borrowing is also not worth it. Firstly, these are unforeseen expenses that may not even pay off in the future – quite often acquaintances “forget” about monetary obligations. And secondly, debts often cause breakdowns even between close friends.
Tatyana Surzhikova also speaks of the need to avoid credit obligations in any situation: “Never borrow and do not lend. Do not become guarantors “.
Nevertheless, if you still decide to help a friend and lend a little or a lot of money, then do it right.
5. Set a goal
How to learn to save if you don’t know why? Saving money for the sake of accumulating savings is quite difficult: subconsciously, a person does not understand why this is necessary. Why deny yourself now and keep funds just for the sake of their availability. But if you motivate yourself, “parting” with finances will be easier. To do this, you need to set a goal and systematically invest in it, making regular contributions. It doesn’t matter what to save for: a car, an apartment, a vacation or a new phone.
Anfisa Egorova speaks about the importance of motivation: “As in any business, it is important to set goals in the matter of accumulation. And the more specific, the better. What will we save for? On vacation, car, apartment? How much and by what date is needed? Who else takes part in this goal, and on whom does the result depend? It is very good to have a clear picture and plan in front of me: I want just such a car, a new one, in such a configuration, by March 2019 for such and such a price. I already have so much and I need to accumulate so much more of this thousand rubles over the next 7 months. The goal must be inspiring, so as not to confuse thoughts like this: “Why am I going to suffer, deprive myself, we only live once!”. With the correct goal setting, you will clearly understand why you are doing this and what you’ll get as a result. ”.
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I’m really interested in learning how to save money effectively, and I’m sure many others are too. Could you please share five useful methods that would help us learn and implement successful money-saving practices? Any tips or strategies you suggest would be greatly appreciated!