There are a lot of temptations in the world. Buy it, buy another, buy from us, etc. It’s all happening everywhere. Everywhere you stay there is an ad that’s about to buy something for you.
We do not need all this, but still we buy. Many choices are made in the shop subconsciously. For example, choose a shampoo, toothpaste, etc., based on what we have seen in somewhere in the ad. We do not even think about it.
When you buy things together, we often discover that money is not enough. Credit cards will go through and their amounts will grow from month to month.
How, then, can I not use credit card? How to pay off credit card debts? How to live so that wages could also be saved for rainy days? Maybe you can not only save but also invest?
Record your expences
The first thing to do is to review the costs. Where is the money going? If you know how much money is spent, then you need to know where the money goes. You should think about are you spending too much money on some things.
Make a budget
It should be considered how much you can save on your income initially. Accordingly, a budget should be made and, of course, respected.
At the beginning, it may be necessary to make a budget in such a way that incomes and outgoings are the same. You should not use a credit card for everyday shopping.
Choose something to save for
When saving has a goal, saving is better. If there is no goal, the motivation to do so will disappear. Whether it’s paying off a credit card debt, owning savings, investing, or acquiring some of the necessary / wanted things.
Here are some examples of short- and long-term goals:
Short-term (1–3 years)
- Emergency fund (3–9 months of living expenses, just in case)
- Down payment for a car
Long-term (4+ years)
- Your child’s education
- Down payment on a home or a remodeling project
Make saving fun
Saving is easier than it is fun. For example, one way is to take jars and collect money there. There may be several ones, you can collect several goals. Put on the labels for which you collect money. For example, car, home, vacation.
To motivate yourself to raise money, there are different challenges on the Internet to ease your savings. They are of different lengths. For example, the new year is about to begin and you can do a 52 week challenge. There is one chance here. Amounts can be adjusted according to your needs. For example, the schedule is decreasing, as there will be more costs in December. Or bigger amounts. Pinter was an example of how to get 10,000 or 5,000 by the end of the year.
In today’s smart world, there are different types of apps what helps to save. They may also be helpful. It is worthwhile to use such a concealment that suits itself.
Make saving automatic
Almost all banks allow you to make a savings account. Make an automatic transfer to that account. Every time you get an income, some could automatically go to a savings account. Automated transfers are a great way to save money since you don’t have to think about it and it generally reduces the temptation to spend the money instead.
See how savings grow
Check how savings increase. Do not do this very often, it may seem like no growing. If you have a bank account, then about three transfers you can see how the amount increases. At first, when saving is more difficult and the money accumulates less, it’s better to look around 4 times a year. Then there is still something accumulated there.
If any goal is met, then it will be worth realizing. If collecting for a new car, then it’s worth the purchase. The bonus encourages you to continue to save as much as possible.
Saving is not a sustainable way of living. It is necessary to find additional income to increase the amount of deferred funds more quickly. Maybe you can raise your wages. Maybe you have some hobbies that can make money. For example, photography or crafts.
Loan-free life is great. It might be nice to go to retire earlier and spend more time with your kids or traveling.
What are your motivators for saving? Can you find ways to make more money? Are all your purchases still needed or less consumed?