Almost everyone has a complex relationship with money. Some people live without regard to tomorrow. Some scrupulously save and do not spend their savings. Some think that earning a lot of money is the destiny of the elite. But money is not a sacred object.

Anyone can learn to handle it. So here are some tips for saving money right now. You may have heard of some of them. That’s because they work.


Begin Counting Your Money and Maintaining a Budget

Why do you need to do it? When you don’t know exactly how much you’re spending, you can’t optimize your spending; you don’t see which areas you can save money on. Try using apps to keep track of funds: like MoneyPatrol, the best free budgeting app online for everyone that can help you keep track of your spending and manage all your finances anywhere you go.

Shop Only With a List

A shopping list saves time and money. The key is to follow the list and stay on it. By the way, online shopping is less dangerous than offline shopping: when you stand in front of the shelves, there is a greater risk of buying what your eye falls on.

Think About Which Expense Items Can Be Eliminated

It doesn’t mean you need to degrade your quality of life. It means that instead of, for example, buying groceries at the neighborhood store, it’s better to make a shopping list in advance, go to the store, and buy what you need in bulk.

Form a Financial Security Cushion

A fairly well-known but very effective way is to set aside 10% of any income. Earn $2,000? Set aside $200. Earn $15,000? Put $1,500 in your account. It is your safety cushion. If you’re in financial trouble, use a cash app borrow to get extra emergency money.

Look for Additional Sources of Income

There’s a wide range, from hobbies to investments. Think about what you can do right now. If you realize you lack competence, you need to learn it. You shouldn’t do one thing at a time. There is always the danger that you will be fired, downsized, or your business will find itself in a dead-end situation (like during a quarantine, for example). Everyone can fulfill themselves in more than one area.

Rocking the Financial Muscle

So, we’ve figured out how to save money, and now we’re going to multiply it. Follow these ten steps, and you will feel a little more money and confidence in the future.

Step 1: Manage Your Spending

Start an Excel spreadsheet or set up an app of some kind, write down expenses, and never get out of your budget. But, first, you need to know what your income and expenses are. And make sure that your spending is always less than your income. You are rich in this scheme only when your income minus your expenses are higher than 0.

Step 2: Separate Expenses Into Spheres (Envelopes) and Don’t Go From One Envelope to Another

These are so-called “money envelopes. For example, you may have expenses for food, entertainment, clothing, rent, house, nanny, day-care, and so on. Spread the money out based on your past month’s spending. For example, let’s say you allocate 10% of your income to charity, 10% to helping your parents, and 10% to education, courses, training, and books.

For example, you set aside $80 for education this month and didn’t spend anything. Next month you also set aside $80 — and here, you have $160. You can take some fabulous courses or save up for something more.

Step 3: Create Separate “Force Majeure” and “Mystery Shopping” Envelopes

Use the 20/30/50 rule or set up separate “force majeure” envelopes and put 5-10% of your income in them. If something happens, you’ll have the money to deal with the unexpected.

If you tend to make spontaneous purchases, you should first ask yourself, “What am I replacing for myself with this purchase?” Maybe it’s a source of emotion or pleasure. And make a separate item in your wallet, account, or card for spontaneous purchases. Let there be an amount within which you will buy something.

And what if your girlfriend or boyfriend does not support this method? It is where it’s essential to set an example. Try to save money for 4-5 months and buy something useful, like a vacuum cleaner or a refrigerator.

Step 4: Never Get Into Bad Credit and Always Pay Back All Debt

There are two types of credit: good credit and bad credit. “Bad” credit is credit that doesn’t make you any money. For example, buying an apartment with a mortgage is “bad” credit.

If your mortgage payment is about the same as your rent payment, then, of course, it makes more sense to buy an apartment.

But don’t forget about the fact that when you buy with a mortgage, you’re freezing money for a down payment. Instead, you’re putting money into repairs and spending money on furniture, appliances, and other things.

“Good” loans are those that bring you income. So, for example, you take out a mortgage and rent an apartment.

Step 5: Improve the Quality of Your Life.

To live within one’s means but don’t forget to make yourself feel good and rewarded. Right now, think about how, with the same income, you can encourage yourself?

Maybe go to a massage, or buy yourself something without going over budget. Use apps that help you save money or get some services at a discount, like couponers, for example.

Step 6: Increase Your Earnings

You can’t just say, “I’ll increase my income”. Think about how to increase your income. Set the bar high: for example, by 10% every month. Of course, a lot depends on the initial amount.

If you’re earning $2,000 now, it’s much more straightforward: increasing your income by $200 every three months is realistic. If you’re making $20,000, it will be a little more complicated.

Step 7: Create a Family Budget and a Financial Plan for the Coming Year

It is essential to do so that you understand from what resources and with what money you will go somewhere and buy something.

Step 8: Learn to Live on 90% of Your Total Income

It is our wealth fund. Let’s repeat it: 10% of any income should be set aside. Think of it as not your money — forget about it and don’t spend it. It is your wealth fund.

Step 9: Figure Out How to Make More Money

Even if you have money, but it’s just lying around dead weight, that’s not good. Think about where you can invest your money to make you an income right now. Of course, you shouldn’t invest somewhere without figuring out the process. First, get to grips with the subject of financing, and then invest your money.

Step 10. Devote 30 Minutes a Day to Financial Education: Read Books, Take Courses, Watch Videos, or Play Economic Games

Read books, take courses, listen to podcasts, play financial games: choose what you like and develop your financial planning skills.

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