How to Save: Different Strategies for Monthly Money Saving

How to Save: Different Strategies for Monthly Money Saving

Nowadays, it is possible for everyone in the Internet to find a great many other people's tried and tested ways of saving and saving money every month. We decided to summarize the most popular of these tips under one article, describing tips where no person involved will overpay, but on the contrary - save, accumulate and earn even more in the long run.

 

Traditional methods of making savings

making savings

  • At the end of each day, “deposit” all the money in the purse in a pre-prepared jar with the purpose of saving it on its side (it can be one word - a vacation, a new bag, a new bed, or a visualization in picture format).
  • Set up automatic payments that will reach your newly created savings account. Funds in the savings account will be much more inaccessible to daily spending and, over time, they will also have accumulated interest. You can change your automatic payment amount depending on your current financial situation and monthly earnings.

 

Recent Savings Method: Pay yourself first

Recent Savings Method: Pay yourself first

One of today's best saving and saving strategies is to pay first for yourself. How it gets? This means that you are redirecting a certain amount of your salary as a special payment to your particular savings account and, most importantly, you pay that money yourself before you pay monthly bills or any other expenses. This amount is absolutely your own - it can be 5, 25 or 100 dollars per month or maybe 10% of your monthly salary, any amount you decide will be worth it in the long run. The most important thing is that you pay yourself as the first, not the last. It is very common that most people first pay all their bills and then try to deposit what is left over. But for most people this usual method does not work, because at the end of the month there is usually nothing left because we live from salary to salary. But if you do it the other way and you pay yourself first, then the money will accumulate because the payment itself becomes your first priority. The advantage of this method is that your budget is only a little limited, and if you make additional adjustments to it, your savings will only continue to grow. Make this payment as first - it makes a deep sense. Why do you go to work and work every day? To earn money for someone else? It can't be, isn't it? You go to work to earn money for yourself and your family, so you first have to learn to pay yourself to be absolutely sure that the first priority of your passport, you, is well thought out. It is unlikely that someone else will take care of you, so you have to do everything to take care of yourself and your future. You can also set these payments automatically, so you don't even have to think about it every month, but it just happens - money automatically goes into your savings account. Nowadays, automatic transfers are easily connected to your bank's local branch or online site. Most people who have started using this method soon discover that they are adjusting the rest of their bills and expenditures very quickly, so that they do not even feel the amount spent on savings. When you forget about automatic savings and allow them to grow and attract interest, amazing things happen, plus automatically.

 

How to Become a Millionaire? Automatic!

How to Become a Millionaire? Automatic!

Another amazing thing about automatic transfers to a savings account is that you can become a millionaire in this way. Sounds crazy, right? But it really works. Imagine the following scenario: if someone was automatically credited with $ 2 each week in a personal investment account from the age of 25 until they are 65, then these investments will eventually exceed $ 1000000 (assuming that average percentage return is 7% of the investment). So any simple worker can become a millionaire automatically during their lifetime and enjoy secured old age even without winning a lottery. In fact, this plan does not require almost any sacrifice - just $ 8 per month and high doses of patience, but these are commitments that are often not chosen by most people. Now you know how to become a millionaire .. unless you still have 25, right?

 

The smartest way to save money: spending plan or household budget

The smartest way to save money: spending plan or household budget

The best and most tested method of saving money all the time is to create your own household spending plan or a budget. With the help of the budget, you are able to fully understand what your income is and what your monthly expenditure is. Once you learn these two things in detail, you can search for and find many different ways and categories of expenses to reduce your expenses and increase the portion of revenue that you can later dedicate to making certain savings. The budget is the miracle tool made by the world's largest corporations and companies, and is part of the world's standard business finance management. Of course, this method initially requires quite a lot of work, but it will only need to be checked and adjusted, if necessary, a few times a year or when the income situation changes. The key to this method is that you gain control over your habits, where and how you spend, so you can start re-planning your expenses. Why has Latvia not gained enough popularity among families in Latvia? Many people do not like to plan their expenses, because it involves a substantial amount of work (at least once a year), it is necessary to accumulate all the checks of expenses, etc. But no one has ever said that success comes easy, but you know that the budgeted work will pay off in the long run. Dare to try it out - what can you lose?

 

Use one savings account

Use one savings account

When it comes to personal finance, it is best for some of us to keep these things as simple as possible. Ideally, you should have the following savings options:

  • Emergency fund or savings account
  • At least one savings account for larger future purchases
  • Personal pension savings

If you find it too much, start by creating a single savings account and simply depositing money into this one savings account. You can then increase your investment in this account over time. You don't necessarily need to have a specific savings target, because you never know exactly what the turn of fate awaits you in life. But just as well you can postpone this money to settle in the future for a home or a car or to use that money only when you are already retired. To initiate a savings habit, you can include all 3 positions in one account, and you can also use your funds for emergency situations, with one rule - if you do not have such an emergency situation too regular.