Spend Less and Save More: If you have a friend who always expresses his concern for not knowing how to handle the money and believes that it is impossible to save because he has many expenses. This is the Article that will undoubtedly help.
How To Spend Less and Save More
Learning to spend less and saving more always means improving financial life. These are the best tips you can apply and give to your friends to achieve the long-cherished economic freedom.
How to spend less
Keep track of expenses and incomes
The most common reason for unreasonable spending is lack of control. To determine where the money is being used, it is necessary to keep a daily record of expenses and incomes. Choose a convenient time, such as an evening, record spending and the arrival of money in Notepad or a particular mobile application.
By the end of the first month, you will be able to learn a lot about yourself and your habits. And if necessary, adjust them.
Plan your budget
Calculate how much you need to spend each month. The ideal budget is a budget in which income exceeds the expense of at least 10%.
Determine the daily or weekly spending limit for each expenditure category and adhere strictly to it. To survive with the temptation to spend more, you can set a daily spending limit on the bank card (it can be set up through your Internet banking ID).
Complicate Your shopping
There are several ways to get rid of unpredictable spending. But it will have to complicate your shopping.
- Go shopping with the list of products and strictly adhere to it.
- Take a limited amount of cash with you (or a card with a daily limit).
- Set the rule: if you liked “those green shoes,” don’t buy immediately, buy those on the next day if you do not change your mind.
- Prevent yourself from spending on convenient, but optional things, such as coffee with you, home delivery of food and so on.
Check Your Inventory
Periodically (once a month or six months) disassemble your wardrobe, bookshelves, food stocks. Make lists of what you have. Perhaps a vintage dress is found in the closet, which is in excellent condition today. And in the kitchen, you will find stocks of cereals that have been forgotten.
Get rid of things you don’t use: Sell what you can, even for a small amount.
Learn to Save
You can earn income from smart shopping. Every time you deny yourself from an impulsive purchase, send its value to the savings account.
Set a rule for yourself to wait for sales. In your favorite stores, you have to determine precisely whether a thing is really sold at a discount or it is a misleading marketing move.
Use loyalty programs that almost everyone has. Don’t forget the discount cards at home. Follow the news: Many shops arrange stocks that allow you to save well.
Transfer your purchase amount during the working hours
A good incentive to start saving is to compare. At a minimum, this will allow you to think about the need for some spending. Transfer the price of purchases during the opening hours. For example, you work from 9 to 6, five days a week, the salary-40 thousand dollars. Your hour on average costs 250 dollars. Bought shoes for 4,000 dollars-it’s two of your full working days.
Look for new ways to relieve stress
For many, shopping is an effective way to cheer yourself up. However, this is a harmful habit. Attacks of shopaholism lead to unnecessary spending, which can cause stress to worsen. You will be the one who has spent money on unnecessary things. And you will not be able to get out from this trap “no matter how much you earn, everything will be spent.”
What to do? Find non-monetary ways to relieve stress: walks, social communication, sports, music and so on. Learn to say “anti-stress” purchases hard “No.”
How to Save More
Set Clear goals
Formulate your request as specific as possible. Not “I want a Car,” but “I want a red car of a certain brand by the summer of next year.” Calculate the amount you need to save. When you visualize a dream, it will be easier to limit yourself to unnecessarily spends.
To save money more efficiently, automate the process.
If you receive a salary on the card, set up a transfer of 10% from each crediting to the savings account. It will accrue interest on your savings (sometimes they are higher than standard bank deposits).
Plus the savings account is that where your money protected more reliably than on the bank card, including from you. It will not be possible to withdraw and spend them in a “single movement.”
Learn To Be Aware
Spending on unnecessary things is a sign of childish attitude to money. But the ability to manage finances is the skill of a mature personality. And it should be trained. Look for your way how to do it.
Immediately after any cash receipt divide the amount into several parts. One part-5-10%-set aside as an emergency reserve. This is an airbag that you use only in case of a financial crisis. Invest the second part in any business or make a fixed deposit in the bank. It is necessary to realize that now money is working for you. Spend the third part on everyday needs, try to avoid impulsive spending.
Get a jar for small things.
Get a box or a jar where you will add the small change that appears in your wallet. For a month, such a piggy bank can collect several thousand, which certainly will not be superfluous.
Find new sources of income
Today finding a job is very simple. Many Internet portals unite customers and freelancers on any kind of work. You can work consistently, during free time from the main occupation.
A side job is not only tedious, but also enjoyable: taking a walk with a dog, holding documents, finding information on the Internet and so on. Choose according to your taste.
The most important thing is not to stop yourself from spending more, but smartly save more from your income and prevent the cost-cutting from your monthly salary. If you follow all these rules, your financial situation will improve pretty quickly.
Also Read Our Guide on How To Start The Day With An Explosion Of Self-Esteem