Saving money can seem distant and difficult, especially for those who have never cultivated this habit. The good news is that it is possible to save with just a few routine changes, such as finding out exactly how much you earn and how much you spend, discovering new possible sources of income and saving an amount for unforeseen circumstances.
Here are some basic changes in today's post that will help you save money:
Know exactly how much you earn and how much you spend
The first change you should make in order to save money is to know your real financial situation. For this, you need to know exactly how much you earn, how much you spend and, above all, in which budget categories are the biggest expenses.
Start by listing all the budget income, such as take-home pay, earnings, etc. Then list all your expenses, no matter how small. Even small expenses, when added together, can have a big impact. In addition to writing down values, be sure to categorize expenses. That way, you'll know exactly where your money is going and in which areas you can save.
Look for new sources of income
One of the golden rules of personal finance is to never spend more than you earn. If your expenses are outstripping your income, there are two possible paths: start cutting expenses or increase your current account entries. Within the second option, be sure to evaluate the possibility of seeking new sources of income.
Think about your main skills and outline a strategy to make money from them and get out of the red once and for all . Those who cook well can, for example, make sweets to sell. People who are good at writing can become freelance writers, among other pursuits.
Save an amount for contingencies
Having an emergency fund is the best way to not be caught off guard financially when dealing with unexpected expenses like car repairs or an illness in the family. The ideal is to have saved an amount equivalent to at least three months of monthly expenses and, thus, not having to resort to alternatives such as a personal loan when you need money. Leave the amount in a liquid investment, such as savings, as you may need to withdraw some amount at any time.
Avoid impulse purchases
Impulse purchases can be great enemies of healthy finances. To save money, it is important to always reflect before buying anything, asking if you really need to buy a certain product or if you can borrow it from someone, for example. Those who find it difficult to control themselves should leave their credit card at home and leave only with the money they will need for the day.
Search prices
To save money, researching prices is essential. Before buying anything, do a search in different stores and on the internet before closing the purchase. That way, you guarantee you're getting the best deal. If you decide to buy the product on the web, a warning: check if the store is reliable and be suspicious of prices that are way below average. It could be a trap.
Set goals
Saving money gets a lot easier when you invest in financial planning and set life goals. What would you like to accomplish in the short, medium and long term? Buying a car, down payment on an apartment, taking a big vacation… Once you've decided what your goals are, research how much they cost and set a deadline for achieving them. That way, you'll know how much you'll have to save per month to make your dreams come true.
Put these basic changes into practice now and see how saving money will become much easier!
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Posted by: John Labunski
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