Saving money is one of the most important issues in economics and personal finance. There are simple strategies to achieve it. Have you heard “saving is not just saving, but knowing how to spend”? It is a popular saying and I think it is very wise. Savings and spending go hand in hand.
The concern for saving is not only yours, but also governments and companies. People, businesses, in times of crisis, tend to save more as a way to prevent future problems. This contraction causes a decrease in the demand for products and, therefore, the economy goes into recession. On the contrary, in times of bonanza, people and companies spend, buy, and production and commerce benefit from the dynamics.
The same thing happens to you?
It is clear that the economy does not support low consumption or exaggerated demand. The extremes are not good even for your personal finances.
So what is the perfect measure?
One that allows you to consume and save to later invest.
Now, what do we do to save?
Saving is, above all, a decision. You solve how much to save and for what (a master’s degree, buying a house, traveling, etc.). What is truly valuable is not the amount, but the power of determination.
You can set a small goal or an important asset, like that of my friend Gabriel: he decided to save 50% of his salary so he could become independent in a few years. Simon made a different decision: spend less than he earns. In that order of ideas, he adjusted his lifestyle: housing, car, fun, commitments, costumes, health …
The decision to save is possible if you set your priorities in life. For example, what is more important, travel or an apartment in the best area. If traveling moves your heart more, then the decision is easy: you will live in an area that allows you to fly, or rent a smaller apartment, or share housing with someone else. Choosing and establishing an order will not only make you feel more comfortable, but you will enjoy your commitment more.
This strategy is very important. It’s about balancing the use you give money to feel satisfied. As you saw, saving can only produce a paralysis in the economy. The same can happen in your life. To spend is also to rejoice, celebrate, grow, take care of yourself, give away. You must find the balance in which you feel that your well-being is covered.
It is time to create a table of income and expenses. This is the most effective way to have healthy finances.
- Calculate all expenses, not forgetting those that are semiannual or annual.
- If, for example, you estimate that you can spend $ 250,000 on gasoline, budget $ 260,000.
- It includes a monthly “contingencies” item.
- Put savings on the list of expenses.
The advantage of this method is that, when unforeseen events occur, your savings will remain guaranteed. And, at the end of a few months, you will not only achieve your savings goal; You will also have a little more for the extra budgeted money.
Some point out that saving 10% of income is a reasonable goal; others prefer 25%. What is your figure?
5. Save in group
A very useful method to comply is to save in groups. So, someone will claim the fee! And you don’t want to look bad for any reason.
- Several friends open an account and enter a previously agreed figure monthly. The resources will have a common objective, a trip or an investment
- Some colleagues organize to save. Each month they contribute a fee and do activities such as raffles, sales, dinner with a fee, to increase income. At the end of the year, they share the savings with the returns.
Knowing about finances produces good results. Study, ask, compare.
- Use credit cards wisely (): pay with the ones that charge less (handling fee), the ones with the lowest rates. Choose to pay a fee whenever you can or, failing that, in a few months. You will save on interest.
- The promotions deserve your attention: some invite you to buy what you don’t need yet; others, to buy more than you need. The ones that are really worth it are the ones that offer what you need for the least price.
- Many times, we buy close to our home or work site for convenience. Maybe a few meters beyond, there are other supermarkets, service stations, shopping centers, with more favorable prices.
As you can see, the strategies to save money are simple.