Hello! In this article, we will talk about how to save money, save and spend money properly even with a small salary. Let’s try together to learn how to distribute the family budget and learn about all the secrets and ways of saving.
Rule 1: Know the value of money
Money is not easy for everyone. Some people prefer to work in the Internet, some work nights and do not sleep enough, some people work at a hazardous job and get a lot of diseases, and someone has to combine several professions, which takes all the strength and turns life into an endless marathon.
Before you start saving money, calculate how much you earn per hour. And it is possible to spend this, maybe a small amount of money in a few seconds. When buying a product, think about how much you had to work to earn that money.
Rule 2: To start saving money, say goodbye to debt
A person who has debts and a lot of credit is probably not good at managing their finances. So if you have this kind of difficulty, but you want to learn how to save, then you need to pay off all your debts as quickly as possible.
If this is not possible at the moment, then try to use the following option. Of course, it won’t solve the problem, but it will help you save some money. Find a financial institution with more favorable credit terms and take a loan from them to pay off the existing one.
Having loans can still help you save. Try to distribute 10% (the ones that are “for yourself”) so: 5% you save, i.e. accumulate, and use the remaining 5% to repay the loan (this amount should be in addition to the main part of the payment). I also recommend using various calculators, such as the Credit Card Interest Calculator. This is to correctly calculate the costs, terms, and other factors if you have a loan or are going to take out a loan. This way, you, being a debtor, can still dream and set goals.
Of course, there are different situations in life, sometimes you need a large sum urgently (for example, for an operation or treatment), then you can’t do without a loan. In this case, try to choose a bank, which will ask for a minimum interest rate, and the term of the loan repayment will be as long as possible. Only in this way you can repay the debt without prejudice to yourself. For example, you need an amount of 100,000 rubles. It is better to pay back the credit in 5 years paying 2,500 p. each than to try to pay it back in a year paying 10,000-12,000 p. each month.
Rule 3: How to save money – define a goal
Saving money without a goal in mind means that you will quickly neglect what you started or spend it all on something you don’t need. In order to save a certain amount of money as quickly as possible, you need to define a goal and set a deadline for achieving it.
For example, if you dream of owning your own car for 600 000 rubles, but you have a used car worth 300 000 rubles, you need to save up another 300 000 rubles. If you set a goal and gather the necessary amount for a year, then every month you will have to save 25,000 rubles.
If you don’t have enough money, you can read about how to earn money on the Internet.
Rule 4: How and where to save to save money
Where to keep your savings
Depending on the amount you’re saving, there may be several ways to store your savings. If you’re saving for an apartment or a car (and that’s not a small amount, and rarely does anyone manage to get it together quickly), then it’s best to keep money in the form of deposits. This way you won’t be tempted to withdraw some money to buy unnecessary things. At the same time, the invested money will “work” and bring passive income.
If you are collecting money for several purchases, it is better to have several accounts. This way you won’t get confused with your savings.
In case the purpose of savings is some household items, clothing, etc., then you can keep your savings in a three-liter can, but first, roll it up with a metal lid. This primitive protection sometimes works when you or your family wants to “re-borrow” them.
Many banks have a service of accumulation, after connecting to which, with any money will be automatically deducted a certain amount or percentage of the deposit. This is like the same bank, only safer and more profitable (because any deposit accrues though small, but interest).
Investing money for a long time, remember that because of inflation they may depreciate. It is best to invest your savings in real estate or foreign currency, gold. If you do not have the full amount to buy residential real estate, then you can buy, for example, a garage in a cooperative and rent it out. In the case of currency and precious metals, the risk of losing your savings is minimal. For example, the price of the dollar and gold has only been going up lately, but not down at all.
Rule 5: Keep home accounting records
Start writing down every penny of your expenses. To do this, collect receipts and remember where, when, how much, and for what you paid money. Writing down all of your expenses on paper allows you to analyze where you spent more than you were supposed to and what you saved money on.
You can do home accounting manually, using a notebook or notepad, as well as with the help of your PC by installing the “Home Accountant” program.
You should not only write down expenses but also income. After the next paycheck, distribute all funds, starting with mandatory payments. You can use the envelope method for this. Get a few envelopes, sign them “For Utility Payments”, “For Food”, “For Transportation Expenses” etc. And put in each the required amount. This way you won’t spend too much money.
You can involve your husband or wife in this process. They can do checks and audits. This method will discipline the “accountant” and will not let him relax.
By following these simple rules, you are guaranteed to save and accumulate money more efficiently.
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