Many adventurers and deceivers enriched themselves at the expense of naive citizens who hoped to get big money without much difficulty. Remember the infamous Sergei Mavrodi and his joint-stock company MMM? People carried their savings to him and believed that he would increase their capital. As they say, we wanted the best, but it turned out as always. But if you want to save money and not give it away, you should learn to avoid these scams.
So how can you save money with a small salary?
The age-old philosophical question: “What is better – to live in constant savings or earn more?” One group of experts argues that if you do not know how to save, expenses will overlap any income.
Save with every paycheck
If you desire to save money, the first step is to decide how much you can save. Decide what you need savings for – for a necessary purchase or just for a “rainy day.”
The best option is at least 10% of your earnings. Make it a basic rule for yourself: you received a salary, postponed a certain percentage and don’t remember them again.
If you are confident enough, you can keep your money at home. But if you doubt your composure and there is a danger of waste, it is best to keep your money in a bank. Open an account, get a card and transfer a certain amount to it every month.
Calculate your expenses
For the accumulation of finance to become effective, you need to calculate your income and expenses accurately. Get yourself a notebook and write down your spending to the last penny in it every day. Save receipts from stores, record costs in the markets, all purchases, gasoline costs, etc. If you take everything into account, you can easily identify useless purchases that should not be made in the future after a month.
Learn to save money by going to the store for goods. Write a list of required purchases and stay within the planned scope. Don’t fall for marketing gimmicks that provoke random purchases.
Reduce the cost of “harmful” goods such as cigarettes and alcohol. And best of all, give them up altogether and lead a healthy lifestyle. After doing the final analysis, you will see how much money you have saved without wasting it.
Put in the bank for interest
If you plan to purchase an expensive purchase, for example, a car, house, etc., you may need to save up for several years. In this case, the bank will be the best assistant for you. Take advantage of the available information about various banks, choose a suitable one for yourself, with a good status and attitude towards customers.
Open an escrow account. This type of contribution will help you reduce waste due to limited access and save your finances from possible inflation in the future. Every month, upon receipt of income, you can transfer money to the account and use the interest at your discretion – or forget about them, let it accumulate, or use it for unexpected but important purchases.
An important point: decide on the currency in which you will store your savings.
Visualize a dream
To learn the science of the accumulation of finance, it is first necessary to determine the goal. In other words, why do you need savings, and what do you plan to acquire in the future. Your goal should be specific and highly desirable. Then it will be much easier for you to save money, and it is easy to give up a certain amount of money for a certain period.
In this case, your goal acquires the properties of a dream. Then it will not be easy to take and let all the money go nowhere, giving up the cherished dream. And the goal for saving can be different – from expensive computers and vacation trips abroad to buying a new car or apartment in a good area.
To avoid the temptation to spend part of the money immediately after it is credited to the account, it is better to postpone the planned share of the salary in advance. If you receive money on the card, you can order an automatic payment for a certain percentage online in your bank’s account. Then your funds will be transferred to the account every month independently.
It may seem that this is unacceptable for you and that it is impossible to foresee all situations in advance. But be patient for a while, and then you will understand that you can live without the money saved, without even remembering their existence.
A few more small tips to help you save money correctly:
- Check your rates regularly on phones and the Internet. Perhaps they are already outdated and need to be replaced with new ones, more profitable and cheaper. Check your utility bills. Incorrect charges often occur for several reasons.
- Go to sales, especially holiday sales. You will have an excellent opportunity to purchase the products you want at discounted prices. But first, find out exactly what discounts are beneficial.
- Take advantage of bonuses. Apply for bonus cards in the shops you visit frequently.
- Refuse loans. This is a very bad deal with the bank. A large overpayment of interest will not only not help you save money, but it can also drive you into debt.
- Financiers claim that each of us is wasting more than 30% of our income. Learn to properly spend your own money, plan your spending and savings. Try it and be sure – it will definitely work.