Savings would be wise to compare to a diet that aims to gain weight. For the arrow of the scale to swing to the right, you need to consume more calories than you spend. Accordingly, in order for the amount of money to increase due to savings, you need to spend it less than you receive. Moreover, it is important to know what they are spending on. Even if you live according to your income and therefore know approximately the amount you are spending, the cost structure may surprise you unpleasantly. Therefore, it is worth starting to introduce the habit of saving by fixing all expenses.
Install an app for tracking expenses on your phone. Write down each ruble spent throughout the day.
A very simple question: how much money do you have right now? Taking into account the funds on the card, savings, placers of euro cents left after the trip, stash for a rainy day in a box, little things in pockets, coins rolled under the sofa? If you know the exact answer, you are an economy guru. And you are reading this text just to make sure once again how cool you are in everything related to finance. Well, either you have 437 rubles left in your pocket before your salary, and therefore it was easy to calculate. But usually a person can answer this question very roughly, and this is fundamentally wrong. You can plan your expenses as much as you want, but it will be effective only if you know everything about your income and the state of your accounts. Therefore, you should have information about your money, not only in cases when there is practically no money left and you need to survive at any cost. First, record all your earnings. Cash birthday gifts, envelopes from grandma, tax deductions - all these are receipts that must be taken into account.
If your salary consists of a salary and a floating bonus, you are a freelancer, the organization pays an additional thirteenth salary or quarterly bonuses, it is important for you to understand your average monthly income. Collect all payments from the last year and calculate how much you can expect on average every 30 days. Look at what month and what was the maximum income, what contributed to this. When and what was the minimum income: why, whether this situation will happen again and whether this amount is enough for life.
You won't save a penny until you know where your paycheck is going. Write down expenses during the month using special programs (there are many of them on the Internet) or a regular notepad. You will be surprised at the amount you spend on some things. A clear picture will help you identify problem areas and understand where to save money.
If analyzing every day is difficult, limit yourself to at least two months a year. It is desirable that one of them be December - this is often the most expensive period.
Spend less than you earn
Making a profit is easier than keeping it. As income increases, expenses usually increase as well. The way to avoid this is to control spending. The less money you take with you to the store or restaurant, the more will be left. Try to pay in cash - this makes it easier to track your finances and not get into debt. For example, take a limited amount to the supermarket - only for essential items. This way of saving is known as the "latte principle": by giving up an extra portion of coffee, you can save more than one hundred hryvnia per month.
If the expenses exceed the salary, you will be in the red. In such a situation, not only will it not be possible to postpone, but you will also have to take on additional expenses in the form of a bank loan. Balance at zero? You know how to plan, but you don't know how to save money correctly.
Planning and motivation are saving's best friends. Postponing for a rainy day is a losing strategy in advance. Determine what you are collecting for and provide a realistic time frame. The goal can be both global (apartment, car, study abroad), or small, but important for you (example: buying a phone). Specify what you are collecting for. Not just an abstract smartphone, but a specific model at a clearly marked price.
When there is a planning subject, set the period and amount of savings: how long it takes to collect the entire amount and how much to save each month.
Save early in the month To save up correctly means to allocate finances from each salary. Not at the end of the month from what was left, but as soon as we received income. Think of savings as other must-haves in your budget. Do you pay for the Internet and utilities? This is also the case for a savings account.
Is your goal to accumulate about 30 thousand hryvnia in six months? When receiving a salary, immediately hide 5 thousand in an envelope or put it on a card. The remaining amount remains for a month. This strategy teaches you to use a smart financial framework.
Financial literacy is the level of knowledge about finance, personal savings and how to manage them. In this article, we will talk about the basics of financial literacy that will help you become financially independent and manage your money wisely.
You spend whatever you earn. No reserves are formed. Housing problems are solved by attracting a maximum loan, which increases interest costs and lowers the standard of living.
You often buy out of emotion and then don't use the purchased items. Many purchases are made using loans, including consumer loans with the highest interest. You do not work for yourself, but for the banks.
You basically want to buy a foreign car without considering buying a domestic car. You need a 3-room apartment right away, but a 1-room one does not suit you.
Any person needs to have reserves that can be spent in case of force majeure situations. The minimum amount of reserves is 6 months income. Optimal - income for 1 year. This amount of reserves will allow you to comfortably cope with temporary difficulties or change your profession if necessary. If you are planning to have a child, the amount of reserves should be increased. You will not be able to fully work for some time, while your costs may increase significantly due to the addition to the family.