Everyone knows what to save for retirement, major purchases or education. But not everyone can do without a daily cappuccino from a nearby coffee shop or a trip to the new blockbuster in IMAX. We tell you how to abandon unnecessary expenses, get closer to financial goals, but stay happy.
Why save money
Money is an instrument that creates a prosperous life not only now, but also in the future. Proper budget management and accumulation is a chance to influence prospects, and not depend on the state, economy, employer or accidental circumstances.
1. To have a “airbag”
Save up in case of crisis. Then dismissal from work, a car breakdown, a bad tooth or other unexpected problem will not be a disaster.
When buying jeans at a discount is perceived as an opportunity to spend the remaining money on food in the delivery service, then putting it off for a “rainy day” is difficult. If it comes, you have to get into loans or borrow from friends. The personal economy is getting more complicated, because the list of obligatory expenses is increasing due to debts.
2. To create a pension increase
The sooner you start saving money for old age, the greater the amount will be at the time of dismissal from your last job. If you save at least 100 rubles every day, after 40 years you will have 1.46 million rubles. Of course, inflation will change the real value of this money, but investment instruments will help protect against it and increase capital..
3. To invest
This goal overlaps with the previous one. Investments in securities, precious metals, financial instruments – the ability to save and increase. By making the saved money work, by the age of 50-60 you will collect such capital that will allow you to retire as early as possible and live off the passive income.
4. To invest in yourself
To invest in yourself means to remain in demand. Get new skills and develop current ones: learn English, improve qualifications, study business tools or another specialty.
Today, the front-end developer is one of the most needed professions, but perhaps in 10 years interest in them will decrease due to the appearance of bots and DIY service designers.
5. To educate children
The traditional university education system is losing relevance. But education itself is needed more than ever. For useful knowledge you have to pay well. No matter what you choose for the child: a public academy, a private university or online education, it will take money.
How to save money: 5 strategies
1. Save 10%
Anyone can take 10% of their salary and defer. With an income of 50,000, in 12 months it will be 60,000. Next year, put this amount on a deposit in a bank, protecting against inflation.
Even with a salary of 20,000 rubles, try to save. If you find it difficult to “tear” 10% off right away, start at 5% or 1%. The amount will be small, but it will develop a habit.
2. Pay yourself
Before you pay basic expenses, first pay yourself. Set an exact goal and deadline. So, you will have a clear motivation. For example, accumulate 700 thousand for two years for an initial payment for an apartment. Determine the amount you want to save every month. After receiving a salary, immediately transfer this money to yourself.
3. Divide your salary into five envelopes
Divide your monthly income by 5 and spread the money into 5 envelopes. Each of the four is a one-week budget. The fifth envelope is savings. If it is problematic for you to split the money equally, put 15-20% in the fifth envelope. The main thing is that this amount remains stable from month to month.
4. Automate payments
Set up a monthly transfer in a bank application to a separate account. This helps pay yourself automatically. You don’t need to think about the size of the savings every month, and it will become a habit to manage a reduced budget.
5. Get a cashback card
Cashback is a marketing trick of banks that encourages you to spend more. But you can make him work for himself. If your card in the current month receives 5% of cashback at gas stations or in supermarkets, use it only, not cash. You will spend the conditional 10? 000 anyway. But 500 rubles will be returned by the bank. Then send them to the piggy bank account.
How to save money with a small salary
The principles of accumulation are the same: set clear goals, draw up a plan and do not give yourself concessions.
1. Analyze costs in 2-3 months and remove what you can refuse
Often the amount of unnecessary whims that we allow ourselves is surprising: fast food, bad habits, an excess of children’s toys, home accessories, useless gifts. If you exclude such expenses from the budget, then save those very 10%.
2. Reduce required costs
Use light and water more economically. For example, load the drum of the washing machine fully. Do not chase it by placing a small amount of clothing. Plan your route and time for travel by car. So, you will not burn gas in traffic jams, leaving the cottage on Sunday evening. Upgrade to a cheaper ISP and mobile phone plan. Call your operator and ask how to reduce maintenance costs..
3. Do not take loans
Loans are one of the main reasons for the poor financial situation. When buying something on credit, a person buys something that you cannot afford. Therefore, do not take money from banks and microfinance organizations on a new phone or TV.
A loan is justified when you are in business. For example, you need another minivan to deliver the goods. Debt will be repaid at the expense of profit from sales, and not at the expense of new debts.
4. Buy from the list
And even better: on a full stomach and in time pressure. It is proved that a hungry person buys more than necessary in a store. Like the one who has the time to calmly make out each shelf. Put yourself in a situation where you know exactly what you will buy and do it quickly. Spontaneous and optional purchases will be less.
5. Do not delay the maximum possible
When there is free money left after the transfer of 10%, reward yourself for successful work with your personal budget. The main thing is that these 10% remain stable.
How to save
- Look for discounts for what you need, and do not just buy because of the big discount.
- Spend “financial hunger strikes.” For example, a week without going to the cinema, cafes, bars, shopping centers and unnecessary trips by personal or public transport.
- Plan your vacation in advance. Airplane tickets and hotel rooms are cheaper if you book them for 6-8 months. Plus – you can choose the best deals, while everyone pulls to the last.
- Use personal finance applications. The more convenient it is to control the budget, the more successful it is..
- Use coupon services and discount cards.
- Increase revenue. Salary growth helps save more money and move faster towards financial independence. For this you need to invest in yourself.
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