Accumulating money is one of those tasks that is easy to talk about but not easy to accomplish. This is much more than just spending less money (although this is often not easy to do). How much money should you save and how can you save it? The next few tips will help you understand these issues.
Instructions
Step 1
First, pay back all your debts. By simply calculating how much you spend each month on debt accounts, you will see that the best way to save money is by eliminating debt. Once the money is free of debt, it can easily be sent to a savings account. In addition, the sooner you pay off the debt, the less interest you will pay on it, which means saving your personal money.
Step 2
Set goals that will motivate you to save money. Short-term goals are not at all suitable for this mission, because, for the most part, their implementation does not require much effort. Choose something more significant, for example, buying a car or apartment, vacation in a country you like. Be sure to find out what specific amount will be required to achieve your goal.
Step 3
Indicate the time frame. For example: "I want to buy an apartment in two years from today." However, keep in mind that the time you set yourself to achieve should be reasonable. If you set too short a time limit, then there is a high probability that you will not succeed, you will despair and give up.
Step 4
Determine how much you need to save per week, per month, or paycheck to meet your goal. The easiest way is to calculate the same amount for each period. For example, if you want to save 50,000 rubles for a vacation in six months, then you need to save 8333 rubles every month.
Step 5
Write down your expenses. What you can save comes from two actions and the difference between what you earn and what you spend. Once you are in control of your costs, it is a good idea to analyze them. Write down everything that you spend money on, not excluding small costs. Try to be as accurate as possible.
Step 6
Reduce your costs. Critically review your cost records after a month or two. You will probably be surprised when you see that you spent 500 rubles on ice cream. You will immediately notice those cost items that can be reduced. Depending on how much you need to save, there are probably some tough decisions to make. Think about your priorities and cut down on what you can live without. Calculate how much cost reductions will bring you in a year. Has it gotten easier?
Step 7
Take another look at your goals. Subtract your expenses (those you cannot live without) from your net earnings (that is, after taxes). What's the difference? Does it fit with all of your goals? Let's say you decide that $ 150 a month is enough for your needs, and your salary is $ 230. Thus, you have a balance of $ 80. If there is no way you can fit all the goals into your budget, look at what you are going to save up for and set aside smaller goals or extend your timeline. Perhaps you should postpone your car purchase for another year, or you don't need a new widescreen TV that much.
Step 8
Make a budget. Once you've managed to balance your income with spending and savings goals, write out your budget so you know how much you can spend on any item or category of item. This is especially important for costs that are not fixed and that you place restrictions on.
Step 9
Open an interest-bearing savings account. It is much easier to keep track of your savings if they are separate from your expenses. In addition, you will be able to receive interest on your savings, and this is an additional amount to your savings.
Step 10
Save first, waste later. Saving should be your priority, so don't say that you will postpone whatever is left at the end of the month. Set aside your savings as soon as you get paid. The easiest and most effective way to start saving is to save 10% from each paycheck.
Step 11
Don't get discouraged and don't give up. You may not think about becoming rich, however, it is possible to become a millionaire if you create a strict savings plan and stick to it. You will be surprised how much more enjoyable the things you plan to buy in the long run than what you can buy in the short term. Good things often take time, and the longer you save, the more interest you will receive on your savings.
