BECOME ADDICTED TO SAVING. WE PRESENT SIMPLE TIPS ON HOW AND WHERE TO SAVE
People claim they live from pay to pay. However, experts say that we can always save something from each monthly salary. An important role is played by habits that we create by regular saving and indeed the basic rule – first pay to yourself and then to others. How to learn saving and where to find available funds?
WHY DON’T WE KNOW HOW TO SAVE?
The main cause or the most common excuse is low income. However, experts argue that everyone can save from his/her salary, regardless of the actual amount received to his/her bank account each month. Saving is a matter of habits that we often lack. Meanwhile, we spend more than we can really afford. Future plans or consideration of potential financial risks are missing too. Such risks include a temporary loss of employment or unexpected higher expenditures. These risks should be covered by an emergency fund, which each household should have in the amount of at least six times the monthly income.
CREATE A HABIT
Experts suggest: Put aside from the salary the amount to be saved first. Most households do the exact opposite instead. We save at the end of the month if there is something left of the salary. However, many times there is nothing at the end of the month to be saved and thus, no saving or creating emergency fund materializes. The perfect solution is an opposite approach, which means to pay ourselves first and only then to others. The rest of the month we work with money that is left after having saved a certain amount. Moreover, we can start also with a smaller amount that is gradually increased and in this way we build a habit of saving money for difficult times.
MOST MONEY IS WASTED BY CONSUMPTION
Many households have no idea where their money goes. While regular monthly expenditures, such as housing, utilities, mobile charges, Internet or insurance are the same every month, they have much worse overview of expenditures on meals, entertainment, vacations, cosmetics or clothing. The biggest item on which a largest amount can be saved, are meals. This includes in particular eating in restaurants and purchasing lunch menu during the week. Home-made meals are much more economical. Further “hidden” items are a frequent and unnecessary use of car also for short distances, purchasing unneeded items in quantity discounts as well as incorrect management of financial products or securing of housing.
HOW TO SPEND LESS:
PLan YOUR FINANCES
Draw up a detailed overview of your revenues and expenditures. Revenues often cannot be completely influenced, while expenditures can. Think about where you can reduce spending and what you can get along without in the particular month.
COMPARE PRICES
Compare prices directly in stores, online stores or leaflets delivered to the mailbox. When purchasing in grocery store watch your gasoline consumption so that it does not cost you more than you can save on purchasing discounted groceries.
PURCHASE WITH A LIST
In this way you can prevent purchasing unnecessary items. It is essential to follow the list and not give way to discounts and offers. Always put into your trolley only such quantity of groceries so that you do not need to throw away any remains.
SEARCH FOR DISCOUNTS
Purchase goods in sale or with price discounts. Some supermarkets discount their goods just before the date of expiration even by 50%. If such discount applies to groceries that you will certainly consume prior to the date of expiration, take such chance. However, you need to be careful and resist offers and not purchase goods only because they are currently discounted.
USE LOYALTY CARDS AND STORE CHAIN BRANDS
By using various loyalty clubs, cards and coupons you can save hundreds or euros. Thanks to a loyalty card, a customer collects points that he/she can later use either in the form of gifts, vouchers or special discounts. It is also convenient to purchase products produced by store chains under their own brands.
SKIP RESTAURANTS
The cheapest way to eat is through home-made meals. Although most of us use lunch menu during a working day, it is cheaper to cook meal in advance and in larger quantity, so you will have meals prepared for several days.
CHOOSE HOME VISIT OVER CAFES FOR MEETINGS
Leisure activities belong to major expenditures. If you do not have a prepaid gym, go for a run in nature or get inspired by exercises that can be practiced at home. Instead of meeting with friends in local bars opt for home visits, which will be much cheaper.
