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How to Save and Ways to Save Money.

Saving Money

Saving Money

In order to save the required amount, it is not necessary to stop spending money altogether and give up everything you like - it can be done painlessly.

Different ways to save money allow different people to discover the method of saving that works best for them. For example, for some people, budget planning is a matter of course and they very easily follow the established plan and persistently pursue the set goal, for others, it is easier to achieve the goal if the process of saving money is turned into fun or play.

Small costs become high very quickly.

While at first glance spending $ 5 a day for lunch or $ 3 a cup of coffee or tea every day in a cafe you visit every morning before commuting to work seems like a small enough amount - try multiplying those numbers by 5. That would be $ 25 for lunch and $ 15 for coffee or tea! In total - even 40 dollars per week.

Now multiply that number by 4 to get $ 160 a month. And if you multiply that number by 12, you'll realize the cost of daily lunch and a cup of coffee or tea is as high as $ 1920! Do you still think that saving is not worth it?

It is necessary to form your own financial plan.

You could think of all this as a business plan that sets out the main goal and details the path to it. If you set both main and intermediate goals in your financial plan, you will be able to save the desired amount of money much easier and simpler. It will also help you avoid high levels of stress, anxiety, and tension.

Savings

Savings

You should not always afford "Everything".

Understandably, your ego may try to say the opposite and you may be accustomed to not restraining yourself completely and responding to every invitation from your friends or colleagues. However, you are an adult and need to feel a much greater responsibility. If you care about your financial future, you should choose your entertainment wisely.

Automatic contribution payments can make everyday life easier.

You’d be surprised to learn how many people forget about meeting their financial obligations on time. Therefore, if you also encounter this often enough, you can take advantage of automatic contribution payments. This not only helps to make payments on time but also saves a lot of time.

Always track your bank statements.

Unfortunately, only a very small percentage of people do this. And understandably, this is a big problem because without watching your bank statement and cash flow, you can very easily miss a lot of the details that are important to your personal finances.

What are the Ways to Save Money

Different ways to save money allow different people to discover the method of saving that works best for them. For example, for some people, budget planning is a matter of course and they very easily follow the established plan and persistently pursue the set goal, for others, it is easier to achieve the goal if the process of saving money is turned into fun or play.

Do not forget the so-called 50/30/20 rule, which will help ensure that your savings and your personal budget are properly balanced. Under this rule, 50 percent. of the income received is allocated for subsistence, 30 percent. - entertainment and non-essential purchases, and 20% - You can dedicate yourself to savings.

  • " Yourself" Rule

If you've already anticipated the goal you're saving for, the "First and foremost" rule can help you save time over time. This means that when you receive a salary, you first put the money into savings.

  • "12 Months Challenge"

This challenge turns saving into a kind of game. Its essence is very simple - the money must be transferred to the savings account every month.

You can even set a reminder on your phone so you don’t forget to do it. You transfer as much money to your savings account each month. Therefore, at the beginning of the year, after the holidays, you will only need to transfer 10, 20, or 30 Dollars, and over time the amount transferred will increase. With this way of saving, you will save a good amount of money per year!

  • "Coin Box Saving"

You can save by engaging in a kind of hunting for certain coins. You can create your own rules - each time you receive a coin, put them in the savings box or collect only those coins that were produced in a certain year.

© 2021 Deepesh Devarajan

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