how to save money
The question is always relevant. Because reasonable savings allow you to have no financial problems even with a small salary. But many people don't realize how much money is spent daily on buying useless things and paying for unnecessary services.
Having gotten rid of the bad habit of overpaying, you can save money for something really necessary and useful. To stop living from paycheck to paycheck, it is enough to follow the simple rules of rational distribution of the family budget.
5 steps to financial education
When the decision to cut costs is finally made, there are five simple steps to get started:
Step 1 – Change the Settings
Some choose expensive goods and services as they are ashamed and embarrassed to save money in front of others. Don't confuse thrifty people with greedy people. In fact, the ability to spend wisely is a hallmark of a mature and fulfilled person. To convince yourself of this, it is enough to read the biographies of millionaires. Most of them are not used to throwing money away and are proud of this skill.
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An expensive thing is not always better than a cheap one. Branded apparel and footwear, advertising brands of high-quality goods and services often fail to meet buyers' expectations. Its high price may not be due to the quality, but the costs of the marketing campaign. Savings start with replacing popular products with high quality products.
Step 2 – Negotiate with all family members
Discuss the new approach to spending with everyone in the household. This is an important rule, as it will only be possible to accumulate money through joint efforts. If not all relatives are ready for the change, try to motivate each of them. To control family spending, follow these recommendations:
- link additional bank cards to a main card, through which all payments will be made;
- distribute money among family members according to their expenses;
- encourage a rational attitude towards finances;
- set a positive example.
Unfortunately, in educational institutions people do not learn financial literacy. By following these recommendations, you can clearly show children how to save wisely.
Step 3 – Plan your budget in advance
Divide your family budget into spending categories. Because by allocating a certain amount to each category, it becomes easier to control the outflow of money. But you need to plan spending for at least a week, always adjusting the amount according to future circumstances. For example, if you have dinner with guests next week, the value of grocery shopping should be increased.
Most people's household budget consists of the following categories of expenses:
- buying food;
- payment of utility bills and communication services;
- purchase of clothes, shoes, appliances, furniture, etc.;
- travel expenses for personal and public transport;
- fulfillment of credit obligations;
- health expenses (medicines, medical appointments, gym, massage room);
- buy gifts;
- vacation expenses;
- purchase of household items;
- repair, maintenance of home comfort.
The distribution of expenses among these categories in different households is different.
Step 4 – Choose cash
Psychologists believe that using bank cards, a person loses the feeling of an outlet for finances. When paying for goods and services with real bills, the level of cost control increases. This rule also applies to credit cards. It should be remembered that any loan involves an overpayment in the form of accrued interest. It may take some time to fully withdraw the loans as saving money on a small salary is not easy.
If you are not ready to give up cashless payments, choose bank cards with cashback. Returning a small amount of expenses to the account will become a tangible bonus if you regularly pay for goods and services by card. It should also carefully consider the study of the conditions of registration and use of a banking product. Sometimes banks prescribe hidden payments in the contract.
Step 5 – Write down all your expenses
People are often too lazy to keep a diary, writing down the day's expenses. This is one of the common mistakes as it is impossible to save your money without control. With the advent of smartphones, budget control has become much easier thanks to special apps and programs. After installing these programs on the phone, the user is prompted to make all in-app purchases, service payments and bills.
Keeping this financial journal gives a person two possibilities:
- discover useless purchases and abandon them in the future;
- predict future expenses based on previously obtained data.
At first, you may forget to write down all purchases, but soon it will become a habit. In order not to give up what you started halfway through, you will need perseverance.
Rules for saving on food
Many people spend the better part of their income buying food. However, they do not eat delicacies or exotic foods. This is due to the inability to form stocks properly and go to grocery stores. You need to pay attention to this as you can save money for an expensive purchase if you save 20 to 30% from your grocery budget every month.
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This way to save money includes 5 rules:
- Products that last a long time, buy in bulk. This will help save 10-15% of your cost. These products include cereals, pasta, tea, coffee, juices, canned foods.
- Do not store perishable goods. The average household throws away about 20% of purchased food due to spoilage. Buy perishables daily in small quantities. It is better to buy something that is not enough than to throw away food and money with it.
- Go to the full store. Hunger subconsciously makes us buy too much. To avoid this, before buying food, it is better to make a list of what you need and follow it strictly.
- Do not buy packaged and cut products. If you can buy vegetables, fruits, sausages, cheese or cereal by weight, choose this option. Packaged products are often more expensive, even if the quality is the same.
- Take food with you. It is cheaper to eat homemade food at work, at study, on a trip than visiting cafes or restaurants.
Saving on food will also help maintain health if you refuse unhealthy convenience foods, chips, crackers, etc.
How to save on fares?
A significant part of the family budget is spent on utility bills. To control costs, you must install meters. Starting in 2022, people who don't follow this advice will pay higher utility bills. Reducing consumption of water, gas, electricity is an eco-friendly way to save money, as you can save money while saving natural resources.
To pay less for the phone and the Internet, carefully read all the operator's tariffs. Often, the company automatically connects new subscribers at an unfavorable rate. Considering the individual characteristics of the use of communications, you need to choose the most advantageous package of services for you. Often, discounts are provided to those who are willing to pay upfront for services. Because by paying in advance for several months, you can save up to 20% on the Internet.
Modern instant messengers and social networks also make it possible to reduce the cost of mobile communications. Because sending messages and making calls over the Internet is a small savings. But people who are forced to use their cell phone frequently will feel it in a few months.
5 cheap shopping rules
To regularly buy clothes, shoes, appliances, electronics, many people need to save. Psychologists have developed 5 rules on how to save money on a small salary and buy everything you need:
- Don't make impulse purchases. If you want to buy something expensive, think about it for a few days and discuss it with your loved ones.
- Use bonus cards, discounts, discount certificates. If you are going to buy an expensive item but there is no discount card in the store, contact your friends and acquaintances. Maybe someone will agree to lend you their discount.
- Don't buy anything at the first store. Compare prices in different places, find the product you are interested in on the Internet. Because then you will be better prepared to buy.
- Refuse new products and brands. Because things from a new collection, like new equipment models, are often expensive. But already a few months after the presentation, they can be bought cheaper.
- Pay only for the functionality you need. Expensive models of home appliances and electronics are equipped with dozens of functions. Before you buy, consider what features you really need and what you shouldn't overpay for.
A smart approach to shopping is to save the family budget. To avoid emotional shopping, make a spending plan before shopping and limit the amount of cash you carry.
Budget vacation rules
The phrase “budget vacation” causes only negative associations for many. In fact, with a rational approach, you can organize a cheap and enjoyable trip for the whole family. For those who are interested in how to save money on a small salary and not rest, experts advise following the following rules:
- Plan your trip in advance. Because by purchasing plane or train tickets 5-6 months in advance, you can save up to 50% off the cost.
- Compare hotel prices before booking. When choosing a hotel, find it on several websites and compare prices. Because it allows you to find a better deal.
- Avoid high season and holidays. Prices for flights, accommodation, meals and excursions increase by 30-40% on holidays and high season. At the same time, resorts are overcrowded with people during this period. It is much more comfortable and cheaper to rest a few weeks before or after the peak period.
- Hear advice from experienced travelers. In preparation for your trip, check out travel blogs and forums. They will suggest shops, cafes, restaurants with the best prices. Usually these are places not promoted among tourists.
A person's level of expenses is heavily influenced by their lifestyle. By quitting smoking and drinking alcohol, you can save not only finances but health as well. The same rule applies to physical activity. If you can walk to your place of work or study, do not use public or private transport. Physical activity, in this case, will improve health and save the budget.
By following the above tips, you don't have to think about how to save money for a happy life. Because by refusing overpayments and useless purchases, you can quickly improve your financial situation.