4 tips to save money every month
It is said that “saving is the basis of fortune” and it cannot be truer. Having a “mattress” saved can help us in the face of a bad economic situation to investor think about the future. Therefore, in the following article, we will give you some tips to save money every month. And then use it as you consider most appropriate!
The content of the summery:
Why is it good to save money?
Tips to save money
1. Write down your expenses
2. Establish a budget
3. Separate for saving
4. Reduce your expenses and debts
Why is it good to save money?
It is always necessary to have a little money saved that serves for an emergency, to make a good business or for extraordinary expenses. Many people live “daily” and are one month away from bankruptcy if they are dismissed from their employment (beyond the compensation they may receive).
Not everyone has the habit of saving and, worse yet, they do not know what their benefits are. At any time, something unexpected may arise that requires cash. How do we solve it if we only have debts and the credit card in red?
And not only that but also saving money is synonymous with thinking about the future. Maybe you are one of those people who “live today”, but you should bear in mind that if in the present you are doing well, maybe things will change tomorrow. We must always be prepared.
It does not mean that we stop giving ourselves some tastes, but that those additional and unnecessary expenses are more the rule than the exception. There are many expenses that affect our economy: vacations, dinners in restaurants, weekend getaways or clothes.
We also spend a lot when it’s sale season, when there are offers or promotions in our favorite stores or if we’re bored. To avoid the situation of “cutting costs” by an external factor, such as (increase in all services) it would be good to save a little each month.
Tips to save money
On the one hand, it is about being more organized or intelligent and on the other hand giving up certain “pleasures” that only try to fill a void or give us the feeling of happiness for a short time. For example, the “whims” of clothes, shoes or evenings can be reduced as much as possible in order to save money. Here we give you other recommendations:
1. Write down your expenses
One of the best ways to save money is to know your consumption habits. This means that during a month you take the trouble to write down everything you spend. When returning from making the purchase or paying the bills, place those values in a notebook (or Excel spreadsheet).
Be detail in your notes to realize what you are spending more … a coffee on the way to work, lunch in the office, a hand cream or a taxi ride. When we know what we spend the money on, we can eliminate those unnecessary items. Why do not you prepare your coffee at home and take it in a special cup? What if instead of buying lunch you cook it the day before?
2. Establish a budget
If you are in charge of making purchases and paying bills at home, you will surely know the approximate value of what you need monthly. Take into account all the fixed expenses and do not go beyond what is stipulated. Of course, there may be changes, for example (that the electricity bill has increased), but you can reduce the electricity cost if you turn on fewer lights or wash clothes only once a week.
The budget can help us in many ways because, on the one hand, we know how much we spend and on the other, we have a maximum “cap”. Make an account of how much you spend on food, transportation, and services, that is, the three fundamental pillars of a home. If you try to start a new business we suggest to reduce 10 unnecessary expenses when creating your company.
3. Separate for saving
One of the main mistakes that people make when trying to save money is to pay all bills and monthly expenses and then if there is something left over, put it in a piggy bank. However, that often leaves us with very little money available to save.
It is recommended that the savings each month be 10% of the salary … and to ensure that this sum reaches the indicated place (a safe deposit box, under the mattress or a small investment) we must separate it as soon as we receive our payment.
And something more: establish what situations or purchases deserve the withdrawal of certain money that has been saved. For example, a medical emergency, a problem with the car, an urgent repair at home, etc. Saving money is not synonymous with spending “on anything”, but we will be like at the beginning.
4. Reduce your expenses and debts
This is essential to have better finances and be able to plan for the future. As a first step, we recommend that you stop paying the minimum of the credit card and that you try to advance fees on your personal loans. In this way, you will avoid incurring larger debts for interest or penalties.
Second, it is very important that you reduce your monthly expenses. Are you dining out every weekend? Do it only once a month. Do you buy clothes every time you charge? Only buy clothes for special occasions such as your birthday. Are you traveling all holidays? Better stay at home sometime.
In this way, your finances will be a little more “quiet” and you can save money.
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Have a nice day!!