If you still do not know how to learn how to save money with a small salary, then it’s time to use these Ways to Save Money that has been formulated for a long time and have passed the successful test of time.
First thing you should remember before embarking on the path of saving. Right saving is not prejudicing to your needs and not a direct road to poverty, but rather a competent arrangement of life priorities, which in turn allows you to come to the rational use of cash.
1. Arrange your Financial Priorities
Monthly financial costs depend on the lifestyle of a particular person. So, young people, who are embarking on the path of independent living, often do not think about how to save money and live succumbing to minute weaknesses and temptations. This, of course, leads to excessive spending and holes in the monthly budget.
All our financial costs can be divided into three groups: urgent, not very urgent and those that can be excluded.
- Urgent payments include utility bills, purchase of food, clothing, as well as payment of debt obligations (loans, installments) if any.
- Those that can wait can include a vacation abroad or a birthday celebration.
- Some expenses can be completely excluded from the budget. These include trips to restaurants, purchase of new equipment when the old one still works fine but is not considered modern, trips to entertainment and entertainment venues, etc.
Your monthly expenses will depend on how you set your life priorities correctly. Of course, a young man should not completely exclude the sphere of entertainment from his life, but can go to the club to relax not every day, but once or twice a month.
2. Track Your Income and Expenses
The greatest motivator for action will not be the analysis of a specific situation: to go or not to go to a cafe today, but to calculate the money spent on such trips for a month. After all, until you see your expenses in numbers, you cannot manage them.
According to experts about 95% of people spend the most money on salary day.
3. Pay Loans and Installments
Those who live “on credit” will never learn how to save and rationally use their budget.
Of course, today banks offer quite attractive conditions for interest-free loans. which allows you to purchase expensive things. Most of them, are also completely unnecessary or are far from essentials.
If you already have a loan, then it is time to review its conditions. It may be more profitable to take a loan from another bank on more pleasant terms and repay the original one at the expense of it. If you plan to take a loan soon and there’s no getting away from it, then consider options for longer-term loan obligations. So the monthly payment will be an order of size smaller, which will reduce costs.
4. Refuse Unnecessary Purchases
It is not unfounded, because according to statistics when we are hungry, we make more unnecessary purchases. Going to the store, make a list of necessary purchases and try not to go beyond its framework. Also do not go to large stores after work. Another rule of going to the store is the rejection of large amounts of cash in your wallet: take as much as you need for what you indicated on the list.
5. Saving on Food
Saving on food without harm to health and diversity is also possible:
- Cook your own food, but don’t get ready-made.
- Eat only at home or at home cooked food.
- Buy goods in different stores at more favorable prices, and not in one, where certain products may cost less, and some necessary ones are several times more expensive than in competitor stores.
6. Do not Believe Stocks and Sales
All promotions and sales are a well-planned marketing move. According to statistics, more than 90% of people buy things they don’t need at sales. Buy only those items on sales that you buy on regular days, and in the same quantities. For example, you buy a pack of oil once a week, and the store has big sales. No need to buy everything, buy the same pack of oil, only now it will cost a little cheaper. If you buy products along the way that you usually don’t buy, your savings will be an additional expense.
7. Remove Bad habits
Bad habits are far from cheap hobbies. In fact, why should we spend hard-earned money on something that also spoils our health? Give up bad habits and you will not only save your budget but also improve your body. For example, buying a bottle of beer and a pack of cigarettes a day reduces your budget by 5-8 dollars. With such expenses, you can save up for a good laptop for a year!
8. Use Discount Cards, Coupons
Never refuse to apply for discounts and discount cards. After all, if you don’t need household appliances soon, then a card with a discount on it will be useful to your friend or relative, who in return will be able to provide you with, say, a discount on furniture.
9. Save on Communication and Internet Expenses
As already mentioned, without these pleasant and convenient services, our modern life is impossible, but we often use tariffs that we do not use 100%. So what prevents us from connecting to the tariff that will be more acceptable in terms of costs, and at the same time will not affect the use in any way? Sometimes we connect services that we don’t use, and sometimes the operators themselves impose them on us, without even notifying about changes to the terms of the contract.
10. Reduce Utility Bills
Utility bills can also be reduced. To do this, you just need to remember the need to save, as well as the fact that in this way you will get “extra” money.
So, be sure to turn off the light when leaving the room, use energy-saving light bulbs in lighting fixtures, instead of using an electric kettle, use a regular enameled one or even fill the water in a thermos. We also consume water in very large quantities and often in vain.
11. Use Piggy Bank
The piggy bank is one of the best ways to Save Money, it would seem, is a relic of the past, but in fact, it is an important thing for those who are learning to save their budget. Throw a trifle from the wallet into the piggy bank, change from the store, for which, it would seem, you can’t buy anything, and at the end of the year look at the amount that you managed to save and even save. Believe me, it will be quite impressive.
13 More Useful Tips on how to learn how to save?
Experts recommend that you definitely use certain savings rules that have been tested over the years, because it’s easy to follow and the effect of use is amazing:
- Pay for purchases only in cash, because in this case, you see the money you give back, and it’s much more difficult to part with it;
- Replenish your deposit monthly or deposit money into a specially created account for this;
- Save money on entertainment, spend more time with your family and loved ones;
- Do not believe commercials and brochures from the mailbox, because they are trying to seduce you with unnecessary expenses and unnecessary acquisitions;
- Only go to the store with a shopping list. It will also not be amiss to make a list of long-term acquisitions (appliances, furniture, etc.). Over time, you will analyze your list and perhaps realize that some things you no longer need;
- Prepare food and eat only at home, because snacking in cafes and restaurants is an unacceptable luxury for those who do not know how to save money with a small salary;
- After receiving wages, try to distribute your income. If this is difficult for you, then open envelopes with the words “Utilities”, “Food”, “Loans”, etc .;
- Plan and spend together and be sure to discuss all weekly expenses and purchases with your family;
- Keep records of income and expenses
- Initial spending – payment of utility bills and loans. Only then distribute the remaining funds in proportion to the remaining days in the month;
- Give up paid hobbies.
- Make gifts with your own hands, because they are much more pleasant to receive, and the costs, in this case, are minimal;
- Abandon fashionable branded clothing and shoes in favor of their counterparts.
What you can save on today
- Expenses for goods from the “I want” section;
- Rejection of bad habits;
- Telephone communication (especially mobile);
- Travel expenses;
- Communal payments;
- Wardrobe items;
- Household chemicals;
Summing up everything written, we can conclude that saving can be done even with a small salary. In order to improve your standard of living and not live from paycheck to paycheck, thinking about buying a loaf of bread or a bottle of milk, you do not need to make any feats, you only need to rationally and carefully approach the issues of new acquisitions.
As many people who have made a huge financial fortune say: “Material wealth is not monthly earnings, but just the ability to correctly and correctly manage your funds. Only in this way will you come to a better life and higher income. ”