Saving is a very simple concept that we all know, it is simply the difference between what we earn and what we spend, as long as the expense is less than the income. If this is greater, then instead of saving, what we are doing is getting into debt.
Many times we think that saving is something impossible, that no matter how hard we try we will not be able to achieve it, and sometimes it even seems that it is a distant idea that we no longer yearn for. Do not be disappointed!!! Saving is a habit and like any habit is something that must be learned. That is why on this occasion we present you with an article in which you will be able to learn several tips on how to save and start building this habit.
Keep in mind that saving is not always easy because it involves saving the money you have today instead of buying something you really want or going somewhere with your friends. That's why it is important that while you build the habit you follow step by step the steps that you will find below.
Let's start saving
Know your income
For some of us the only source of income is our salary, however, if you have several (more than one job, rent, etc.) you must know perfectly well how much money you have available every month.
Identify your expenses
Check which are your fixed expenses, that is, those that no matter what happens you will have to do. Record your variable expenses, which are those that you do not necessarily have to pay every month but only when a particular situation arises. In this item do not forget to take into account the small expenses.
Plan how much you can save
The difference between your income and the sum of your fixed and variable expenses is the amount you are saving per month. Be careful because if the difference is negative or almost 0, it is worthwhile to analyze all your expenses and take measures because in that case you will be getting into debt and sooner or later this will affect your finances.
Analyze your expenses, observe how many of them are necessary. If you identify that you are overspending on any item, try to allocate part of it to savings.
Experts recommend saving at least 10% of your monthly income, however, the amount that each person can save is personal and variable since it depends on the economic responsibilities that each person has to face.
Use the tables and apps that you will find on the internet to guide you on how to identify your income and expenses, and thus be clear about how much you can save.
Always Have A Goal
Set a goal, it can be a down payment for a car, a vacation, some remodeling, owning your own house, having a "little cushion" for unforeseen events.
Start with goals that are easy to achieve and as you get into the habit of saving, increase their complexity. It is important to remember that your goal must be attainable and that you will achieve it in order not to lose motivation.
The goal should have several characteristics:
It must be attainable. This means that we are not wishing for or wanting things that we cannot access.
It must have a time frame. That is, from the beginning we must project when we are going to accomplish the goal.
A great goal is made up of small goals, be very clear that you will not be able to accomplish what you propose in a single period, therefore you must be clear that little by little you will be building to have what you want, so it is important not to get discouraged.
If you have several goals, do not forget to arrange them in order of priority. This way you will be able to accomplish first what is most important or urgent for you.
While you reach the amount you want, make sure your money generates returns. Research the characteristics of the financial products and choose the one that best suits your needs.
To find out your saving habits answer the following test
1. Every time you receive your salary
a. You hardly feel that your paycheck has arrived because your debts are drowning you, so your paycheck goes away like water because you have to pay everything you owe.
b. You pay what is indispensable and try to save as much money as possible.
c. Since you are very organized, you act according to your budget. You pay what you have to pay and you have an amount available that you can save.
2. At the end of the month
a. You don't have a dime, so you have to resort to your credit cards to pay for some things you can no longer afford.
b. Your money is intact, you haven't touched anything and you prefer to keep it that way.
c. You can calmly wait for the next payment to arrive since you have fulfilled your commitments and you still have some spare money remaining.
3. Every time you go to the mall
a. You don't care that your finances are a bit deteriorated, you can't stop buying that skirt and that blouse, and of course, you can't stop buying the shoes. The outfit looks amazing.
b. Although the stores have many things that catch your eye, you prefer not to buy anything.
c. You know how much money you can spend without affecting your finances.
4. You have an unexpected extra income, what do you do?
a. It's money you didn't count on, so what's the difference if you spend it. You run to the nearest store to renew your closet.
b. You keep it and don't tell anyone.
c. You buy a few things but you keep a little in case you have any uncompleted expenses in the future.
5. You got sick and have no idea what you have, you are only a few days away from getting your paycheck
a. You borrow regardless of the terms of the loan. You are only interested in getting out of this problem and then you will see how you solve this other situation.
b. You hold out until payday.
c. You resort to the little savings you have to face these unexpected situations.
6. On the Mother's Day that has just passed
a. You bought the gift at a stoplight on your way to the party with your mother.
b. You took advantage of the January discounts to buy her the gift.
c. You included this expense in your April budget, so the purchase of the gift did not affect your finances.
7. The last time you had your car checked
a. You found out that you had missed the date because a policeman gave you a ticket on the street for not having done it on time.
b. Since you are not willing to pay for forgetfulness, every month you check to see if you are due for a check-up that month.
c. You know when it is your turn to verify, so little by little you save money to make the payment without problems when it is your turn to do it.
8. The last time you went to a restaurant
a. You go out to one because there was no food at home, you felt like going in as soon as you saw it.
b. You don't remember when the last time was, you think it's too bad to have to pay somewhere to get a meal.
c. A week ago, you went to this kind of place according to your financial situation.
9. Your last vacation
a. You still owe them
b. You don't even care about them, it's the same to go to the beach or to the park near your house.
c. You organized them in advance and calculated how much you could spend.
10. Credit cards are
a. Your downfall, you can't carry one in your bag and not use it.
b. You have one but you avoid using it as much as possible
c. Every time you use it you know how much you can spend and pay off your debt month by month.
11. When a new electronic device comes out
a. You can't stand the temptation and you go to buy it immediately.
b. You don't even think about it, why would you want another one?
c. If after thinking about it, you conclude that you need it, you make a spending plan and buy it when you can afford it.
Majority A: You have a lot of work to do
Be careful because you are probably spending more than you have, and debts can end up strangling your finances. It is important that you analyze what you are spending your money on and if you need everything you buy. We invite you to use the tables that we include in the article so you can start organizing your expenses and with that, clean up your finances. You will see that with time you will start saving and you will even enjoy it.
Majority B: Don't overdo it
Having a "little cushion" to face unforeseen events is important, however, you are at the other extreme. Sometimes your concern for saving money is exaggerated and surely on many occasions, it causes you anguish. Remember that you only need to make a budget to fulfill your economic responsibilities, save and also spend from time to time on things that give you pleasure.
Majority C: You are on the right track
You are very organized with your finances, you are very clear that a budget can help you to plan what, how, and when to spend. This has allowed you to face your economic obligations, have money saved for unforeseen events, and indulge yourself from time to time. Saving is already a habit in you, so if you have not yet achieved any of the goals you have set for yourself, you will surely do it soon.