There are errors that prevent you from saving your money successfully. Errors that range from not knowing what to do with the money saved to invest in things that definitely will not substantially improve your personal finances.
Here you have 5 quite serious mistakes that prevent you from saving your money, not knowing them is the same as not saving, so pay attention and correct them as soon as possible.
Here we explain how to saving your money successfully
1. Confuse your savings with an emergency fund:
There are three totally different things: a saving to invest, an emergency fund and a fund to spend. Most people think that these three funds have the same purpose. Something totally wrong.
It is normal to see that people save throughout the year in a responsible manner, come December and before the first whim or unnecessary expense, go to their savings to give themselves a “pleasure that we all deserve”
There is nothing wrong with these pleasures, as long as they are not financed with our savings fund that must be used exclusively to be invested.
The same happens with emergencies, as far as possible do not use your savings to cover emergencies such as the loss of a job, illness or something unexpected. Create a fund for this. Continue reading: 10 Unnecessary expenses when creating your company
2. Give you the opportunity to spend your money before saving it:
As far as saving money is concerned, you can not trust yourself. You will always manage to spend every penny you have on things you do not need, or irresistible promotions, all with the excuse that next month you start saving.
To solve this, keep the money away from you as much as possible; automate your savings, have an account that you can not touch on weekends, that differs so much money every certain date.
So that when your salary or monthly income reaches you, they have already debited the monthly savings. In this way, it is impossible to spend it.
The mistake is that you spend first and then save when the process should be the opposite.
3. Do not take advantage of the applications to control your expenses:
There are applications that do the dirty work for you, they tell you when you went over the budget, how much money you spent in each category of consumption such as clothes, food or parties.
Let’s be honest, we are all too lazy to keep an excel record of our expenses, or have to keep every invoice of what we buy to arrive at night and write it down in a notebook. However, this can no longer be an excuse, there are applications that do the work for you. So look for a new excuse.
All you have to do is link your credit card and that’s it, automatically these reports are created for you.
Here you have 4 personal finance applications:
- Money Control
- Pocket Money
4. Not being clear about your goals and goals to save:
When you do not know where you’re going, any bus serves you. The same happens with your savings when you do not know what your goals are quickly you lose the sense of depriving yourself of a percentage of your salary.
To have it clear, establish a date and an amount to save. Define what the stages will be, that is, at what time you will invest it and what will you invest it.
When you have this clarity in your head you know what you have to do, you understand that depriving yourself of those things that you want to buy with your savings will be compensated in the future when you can live on the income, the income generated by your assets.
5. Start saving without paying your debts:
Finally, saving having debts does not make sense. It is preferable that you first pay your debts since you will avoid paying higher interest and longer installments.
When you save without paying debts, you have to take the interest generated by your savings to pay interest on your loans. Something that does not make sense.
In a few words, you will make less money, so make sure you cover your debts first; Second, do not get into new ones and finally start saving your money.
“Yourbigbusiness” also recommended you to read this article: 10 Finance Tips for your small innovative Business