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7 Simple Ways To Save Money

by Bryan Stormyweather 2 days ago in personal finance

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7 Simple Ways To Save Money
Photo by Josh Appel on Unsplash

Saving is one of the main rules of financial education. All economists will advise you to try not to spend all the money you make in a month. From theory to practice, however, there is a long way to go. Sometimes it can be difficult to limit yourself to a certain budget, but keep in mind that it is not impossible.

It is important to save for a very simple reason. You must have a financial reserve in case, for various reasons, your source of money will run out.

You may lose your job, or you get sick and can no longer work in the same capacity as at present.

A financial reserve can be very useful in such situations.

Also, if you want to make certain investments or purchases, it is better to save and dispose of your own money, than to borrow from friends or financial institutions.

Here are a few simple steps you can take to save money every month without feeling like a burden.

Good organization of the monthly budget

To save money, all-expense information must be organized in a tracking tool, such as an application, a file, a calendar. Thus, money will be easier to control and costs much easier to analyze.

Monitoring monthly income and expenses, respectively drawing up a budget is the main method of saving money. In this case, each person can have control over finances and can reduce or eliminate unnecessary expenses.

To achieve this, the "50/30/20" strategy can be used. Before a person can start saving, their monthly budget must be divided into expenditure categories, ie fixed and optional, flexible, for efficient management. According to the strategy, this assumes that 50% of the income will be allocated to fixed expenses, such as payment of housing maintenance, rent, bills. 30% of the income will be allocated to flexible expenses, such as food, entertainment, and the remaining 20% ​​will be allocated to savings.

Once planning begins, a person can gain control over spending and be able to save.

Make your shopping lists

When shopping, don't leave without a pre-arranged list. It will help you buy only what you need and you will not spend money on things you do not really need.

Save before you spend

The moment you take possession of the money, you first save. Put the money in a reserve fund and summarize your expenses only with the money you have left after withdrawing the amount saved.

Cook at home

Food cooked at home is much cheaper than food in the city, or ordered. Try to take care of your gastronomy at least one day a week. You will save significant amounts of money!

Make a daily budget

Once you have a daily allocated budget, you will not exceed the limit, or you will try to save the next few days if one day you exceed the allocated amount. Therefore, at the end of the month, you will be able to spend only what you set out to do.

Hunt for offers

Thanks to technology, we have one-click access to all stores, by default to their offers. Analyze the market and make your weekly or monthly purchases from places where prices are affordable, or where suppliers launch offers.

Choose to go on vacation at the beginning or end of the season

It costs considerably less than a stay in high season. Book your holidays through early booking - you can pay 40% less if you book your tickets from November or December for next summer! You can also opt for a last minute offer, but here you must know that you will not always be able to choose the destination of your dreams. In addition, if you notice that a certain hotel has too many seats available at the last minute, it is possible that the offer hides certain problems.

personal finance

Bryan Stormyweather

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