Unfortunately, saving is not a cakewalk. Saving money is a long process, which is surrounded by personal life hacks that make general rules more effective. Saving is a habit. A habit is formed in 21 days. We offer seven simple but working rules that you need to make a habit. Try them for a week to understand the basic principles of saving money.
Day 1. Costs
The savings would be reasonable to compare with a diet whose goal is to gain weight. For the weight loss, you need to consume more calories than you spend. Accordingly, to increase the amount of money, you need to spend less than you get. If you do not keep records of expenses, then you don’t know how much you spend and on what specifically.
Install the expense accounting application on your phone. Write down every dollar spent during the day. Do not throw out checks in stores, but put them in a special pocket of your bag. Then it will be easy to restore the picture of spending.
Day 2. Income
How much money do you have right now? Take into account the funds on the card, savings, placers of euro cents that remained after the trip, stash for a rainy day in a box, little things in pockets, coins rolled under the sofa?
To begin, record all your income. It is important for you to understand your average monthly income. Collect all payments for the last year and calculate how much you get every 30 days. Look at the maximum income and note the month. Then figure out what was the minimum income. Finally, find out how much total funds you have.
Day 3. Motivation
If you make savings, the process will quickly bother you. You limit yourself to various pleasant things, spend time sorting out finances, and what do you get in return? It's time to think about what you want to get financially?
Decide on financial goals. Be guided by rational arguments, but do not push yourself into tight boundaries. When the goal is clear, decide on a long-term strategy. How much money do you need? And is it possible to get them just by cutting costs?
Day 4. Search for ways to save
To save, it’s not enough to abandon a purchase today. In this matter you need to think systematically. Search for ways to save costs in two stages:
Work with expensive habits that make you spend more: takeaway coffee, a business lunch instead of bringing lunch from home, smoking. Eliminate unnecessary money waste.
Think, remember, analyze what items of expenditure can be reduced or eliminated. Start with one bad financial habit and one background expense, and add new ones each subsequent week.
Day 5. Lists
As you already understood, saving and planning are inextricably linked. Therefore, you need to learn how to make plans for the future as well as lists and schedules. The most obvious of these is the shopping list. Another example is a financial calendar in which you set reminders when you pay for utilities, make a loan payment, and so on.
Start with two lists - a menu for next week and a shopping list. In the shopping list, add products that are needed for cooking from the menu. Audit shelves in the kitchen and bathroom. You may find that you need to add something else to the list.
Day 6. Budgeting
It is no coincidence that organizations plan a budget in which all expenses and revenues are contributed. This helps to avoid difficult situations. When budgeting, you go through unprofitable months without problems.
Start with a mock financial plan for the month and year. Try to remember all the expenses, compare them with income.
Day 7. Time devoted to financial stuff
Plan on the weekly schedule the day and hour that you will devote to finance. Ideally, you should do the following at this time:
- Check the correctness of the records of all expenses, sort the checks.
- Analyze spending. Find out which ones were necessary, which were spontaneous.
- Record weekly earnings, if any.
- Start a new shopping list for the week.
- Calculate weekly savings, save this money or transfer to a savings account.
- Make adjustments to the budget.
If you lasted a week, an important milestone is passed. Analyze your spending and consider how to adjust it in the future.
Subsequent days. Habit development
Repeat the starting week twice more with the new conditions. And you will notice that saving is much easier for you.
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