Saving money from the family budget allows you not to be left with an empty wallet at the end of the month. Some people build up a financial safety cushion to have money left over in case of force majeure. However, it would be best if you were a skillful economist and strategist to achieve this. Calculating all expenses and income, mandatory payments, and unexpected expenses is essential. Keeping a notebook or an app on your phone makes it easy to find out what you spent money on at the end of the month and where you can save some cash. By examining your entries over several months, you’ll be able to:
- regularly review deductions for mandatory services;
- adjust your earning strategy;
- lower my bills on certain utilities;
- pay off debts faster, if you have any;
- control expenses in all categories and reduce them to the minimum not to your own detriment.
You should adopt healthy habits when saving money, as discussed below. Avoid impulse buys, and don’t go to the stores hungry – this is one of the main rules that should always be followed! Since most of your money goes to food, “hungry” shopping can zero out your budget.
How to “stuff” your safety cushion without going to extremes
Those who want to save money, but still feel human and a full citizen of society, should get a financial safety cushion. What it means? These funds will be used by the family in case of emergencies, so your own fund should be enough for food, hygiene, clothing, first aid kit and much more.
A certain amount from profits is set aside in a reserve with exact regularity. Let it be ten to thirty dollars. Take into account additional earnings, if they exist. We recommend putting aside at least 20% of all income. This amount will allow you to create a safety cushion for 3-4 months in about a year and a half. You can not save so much at once? Start with 10%, gradually increasing this figure.
You should always remember that the money you have saved up is only for emergencies. They should not be lent to anyone, not even to yourself, going to buy new phone or clothes. Let the financial safety cushion will be inviolable. This way, there will be a decent sum accumulated by the end of the year.
It is still important to organize the proper storage of the safety cushion. You can deposit it in an envelope or open a bank account, for example, with interest on the deposit and direct your finances there.
How to save money properly?
As already mentioned, buying food makes up the lion’s share of expenses from the family budget. Avoid takeaways and try to cook at home. There are plenty of healthy and quick recipes on the Internet that you will find useful.
Fight the habit of subscribing to different services you need to pay for. Buy promotional items only when necessary, not every time, otherwise, you can fall into the marketing trap and buy even things you don’t need.
With the right methodology and your desire, saving money and building an adaptive strategy that leads to a positive outcome will be possible. Ask the following questions to yourself:
- a specific goal – to purchase goods or pay off debts;
- how much you can save per month;
- planning how much money to put in envelopes (how often, how many pieces, and in what amounts);
- saving techniques to achieve results.
Financial experts worldwide recommend having a sum of money in reserve that can cover your expenses for several months. Don’t make impulse purchases. Give yourself 24 hours to make up your mind. To reach your goal, set a monthly spending limit and stick to it. An app on your phone can help you record your spending. If you often shop at one of the hypermarkets, get a loyalty card to get more discounts, especially for bulk purchases online.
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