Money: 5 ways to save them

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money

Regardless of the level you have reached with financial independence and how much you earn per month, it is not impossible to put money aside if you establish a concrete plan from the very beginning. The benefits that come with saving money every month are many. You just have to take the first step in the right direction and gradually you will create a budget of savings.

1. Keep your standard of living below the level you actually afford

If you fail to save constantly, it means that your current standard of living consumes 100% of your (or your family‘s) income.

And you can’t tell me that absolutely all of them are mandatory monthly expenses. The only mandatory recurring expenses are those for food, maintenance and transportation. But notable changes can be made here as well. The rest are non-essential expenses. There is a lot of room for optimization regarding them.

In other words, if you want to maintain the current standard of living but also to save, then you have to increase your income. There is no other way.

2. Keep a clear record of expenses

We can give our opinion on how far we want to go in the direction our money has taken each month. But as long as we do not see exactly what and how, in writing and organized by categories, we will not be able to work effectively on a savings plan.

Here’s what you can do to help control your spending:

  • Centralize monthly statements of all your expenses
  • Organize expenses by categories
  • Keep a unique record that you update with the expenses of a new month that has just passed. You can use an online application, or a smartphone application or even an excel file. The excel file can successfully take the place of any online application if you have saved it in the cloud. Such as Google Drive, Onedrive, Dropbox, iCloud. This way you can access, consult and edit your file from anywhere.

3. Control your instant gratification states

We live in the age of pleasures available everywhere.

Everything is plentiful and invites us to take advantage immediately. In these times it is very easy to constantly spend money on all things. And it is all due to a state present in all of us, called instant gratification.

What is instant gratification?

Instant (or immediate) gratification is that tendency of people to give up a potentially higher future benefit in order to obtain an immediate but smaller benefit.

People have a natural inclination to want good things and to want them now. Although this feature has given us an evolutionary advantage, in many cases it can be a real impediment to obtaining long-term benefits.

4. Don’t pay with the card! You can’t control your money!

Money: 5 ways to save them

In order to be able to control your money at any time and avoid paying many unnecessary commissions, choose to always pay cash. Otherwise, one day, you will find that a piece of paper with “insufficient funds” is thrown in front of you.

There is also a mental issue: when you have to actually take the money out of your wallet, you will find it harder to get it out, thinking twice about the purchase you want to make.

When you pay with the card, simply pass the card through the machine and you’re done. You cannot sensitively charge the amount spent. This makes it easier for you to give up those amounts of money.

5. Hunt the offers of the Hypermarkets!

Did you know that the big stores have serious discounts on different foods every day? You can benefit from price reductions of 25-30%, if you look carefully among the shelves or at the showcases with assisted sale. If you go shopping in the evening, you can find discounts of up to 80%, for foods whose stock is running out, or which have not sold well enough during the day

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