How To Save Money With A Small Paycheck

We spend money every day: buy coffee on the way to work, pay for public transport or taxis, refuel the car, buy food home, or leave some money for dinner at a restaurant. Sometimes finances end so quickly that we do not have time to notice it, so it turns out to please ourselves with a large purchase less often than we would like.

Of course, in such a situation, savings come to the rescue. But here you can face a problem: not everyone succeeds in saving money. Fortunately, the hardest part about saving is getting started. Here’s how to properly save money, even if you can’t boast of a big salary.

1. Control your expenses.

Nowadays it has become much easier to control expenses: in the mobile applications of banks, you can immediately see where the most money is spent during each month. Choose several categories in which you will pamper yourself (we do not take into account mandatory expenses), and in the rest, try to reduce the budget. Yes, you have to make sacrifices, but they can hardly be called huge: you just learn to spend in moderation.

Let’s give an illustrative example. You often dine out and spend a lot of money on restaurants. If you sincerely want to start saving, reduce the number of visits to establishments to 2 times a week, and cook at home the rest of the time. Thus, you will not deprive yourself of pleasure, but you will save a decent amount.

Another life hack: plan your budget before your paycheck. When a clear picture builds up in your head, spontaneous spending gradually fades away.

2. Separate wants from needs.

This point is inextricably linked with the previous one, and it is worth paying special attention to shopaholics and fans of impulse purchases. Sometimes you really want to please yourself: buy a new teapot or fashionable shoes from a famous designer.

If you want to save money, improve your financial literacy and separate wants from needs. Before you pay for an item, ask yourself: do you really need it? At first, it will be difficult to refuse, but in the future, you will thank yourself more than once for your perseverance and endurance.

3. Try not to borrow.

At the moment, loans can be called assistants: if the salary has not yet arrived, and your husband’s birthday is soon, you will buy a gift and get rid of the debt as soon as the funds are credited to the account. But many loans are delayed, and it is impossible to close them on time.

People cover one loan with another, overpay interest, which, in turn, only increases monthly costs. If possible, try to avoid loans, and if you cannot do without them, be sure to keep track of the dates of payments.

4. Open a savings account with automatic replenishment.

Do you want to manage your finances competently? Open a savings account with any bank. It is difficult for all of us to refrain from spending money if the entire amount is on one card. To create a cushion or save for your dream, activate the automatic replenishment function once a month: save about 10% of your salary, and in six months you will see the result.

5. Save cash.

Today most of us use bank cards, and this is very convenient. However, we do not feel how quickly the money goes, so saving is difficult. Use the old and proven method: when your paycheck arrives, take the same 10% off (or calculate the amount based on your budget) and put it in a paper envelope. This approach will save you from rash spending and help you save money effectively.

6. Try to lower your electricity bills.

Payment for housing and communal services is included in the list of necessary expenses, however, even here you can save money. Watch how often the lights are on in your apartment when they are not needed, turn off the TV when no one is watching. You might say that this is a small thing, but wasteful use of electricity negatively affects your financial cushion.

7. Use cashback.

Another option is cashback services. The percentage of any purchase is returned to your account. The most convenient solution will be bank cards with cashback: most often, banks monthly offer the client to choose categories in which the cashback will be increased, there is also a percentage that is returned by default (for example, 1% from each purchase and 10% in the “Food” category) …

By the end of the month, you may have enough money to save it.