how-to-increase-savings

Sometimes the most challenging thing about saving money is getting started. This guide to saving money can help you step-by-step to develop a realistic and straightforward strategy so that you can save for all of your short-term and long-term savings goals and increase saving money.

There are many ways to improve your ability to save money. Some are quick and easy to implement, such as turning off the water while brushing your teeth or turning off the lights you are not occupying.

Others require a little more time, as is the case of allocating a monthly income for investments. And here we show you some alternatives that require different levels of dedication and effort, so ordered from the easiest to the most complex.

1. Follow the 30-day rule

It is the most effortless practice to implement but at the same time the most difficult to follow. Wait 30 days before purchasing items that are not necessities and resist the urge to buy.

After a month, you will have forgotten about the item, or your urge will have subsided.

2. Save the change

Today we handle little change, thanks to the facilities of plastic money.

If you use cash for small purchases, put the leftovers in a piggy bank or something that will keep you from taking that money out until the container is full; allocate that money to get out of trouble or for small purchases of the house.

3. Limited budget

It is operating with a spending cap. In the case of debts, banks usually recommend that the person not go into debt for more than a range of 60% -70% of their total income. The same rule applies to your expenses.

See How to Create a Budget.

4. Eyes on the target

Never enter a store or supermarket without clarity of what you need to buy.

Have your list handy on your cell phone or paper. However, it should be noted that making a list is not enough; Follow these tips the next time you’re in front of the gondola or the showcase.

Check the expiration date. For everyday grocery products, the expiration dates may be closer to the day you bought them. But if you want to freeze or store in the pantry, better buy freshly labeled products.

Take advantage of the day’s discounts. It is always good to check the catalog or the discount magazine because it includes many primary consumer products. Look at the price per unit that always appears in the fine print.

Use the nearest supermarket. Organize your trips to the supermarket so that you can walk; you will force yourself to buy what is and necessary so as not to go with a lot of loads. This will do your pocket, and you’re back good.

Use an eco-friendly bag. Many supermarkets offer sturdy, supportive bags for carrying purchases. They are easy to use and compact to carry in your backpack or purse. Don’t buy beyond what the bag can handle.

5. Apply automatic control

Get organized by paying home or personal expenses in cash and automating large amounts in essential services.

Use petty cash in an amount that suits you.

Leave the credit or debit card for larger purchases or fixed expenses, or organize payments using the Automatic Payment with Checking Account (PAC) or Automatic Payment with Credit Card (PAT) services.

Set yourself a low saving limit that suits you initially, that does not exceed $10 thousand in the beginning.

Every one or two months, reevaluate if you can increase that amount a little more by an amount that continues to accommodate you, say between $1,000 and $5,000. Set yourself a one-year horizon and forget about that money.

6. Save gradually

Keep it away, either in a closed piggy bank (the only option to open it is by breaking it) or through some short or medium-term financial product and quick rescue for increase saving money.

See Why Is So Hard to Save Money?

7. Divide and conquer

Separate the amounts that you allocate for expenses from those that you plan to save. Avoid hosting them in the same account or checking account.

Transfer a fixed amount every week to a savings account, a debit account, or a financial product, such as a mutual fund, an APV, or Account 2. Depending on the investment period, you have to use that money.

8. Get into Japanese mode

The Japanese knew it first of all: the key is in order.

And that is how they developed the Kakebo method, which consists of recording all the fixed and variable expenses, and money income of the person or family, separated into categories (household expenses, personal expenses, leisure, food, etc.).

Why do we put it last? Because of all the practical ways you can save, this requires time, dedication, and habit change.

The system consists of monitoring and reviewing daily and weekly expenses and includes making commitments, such as setting aside a fixed amount only for emergencies or a minimum balance in the checking account.

Like all Japanese, it includes both a philosophical and a practical aspect. The person quickly visualizes where “the money is going” and can separate between unnecessary purchases and basic needs by requiring daily dedication.

Regardless of how you do it – using a notebook, applications on your cell phone or your computer, or with an Excel template, the point is that you visualize your money.

Review your budget and see your progress each month. Because It will help you stick to your personal savings plan and help you quickly identify and correct any problems. Knowing how to save money can motivate you to find more ways to save and reach your goals faster.

So these are the eight rules that can surely help you to know increase saving money. I hope it is helpful for you if you are interested in reading How to Save Money If You Earn Little the click here.

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