How to save money in 10 easy steps
Learn How to save money It is important.
It’s no secret that your financial goals require capital to become a reality, and the surest way to have this capital is by saving.
When you learn how to save money, you are not just putting aside a sum of money from your income, but you are developing a long-term financial mindset that will allow you to lead an enviable lifestyle.
In order not to lengthen this introduction too much, in this article we are going to explain ten steps so that you perro start saving money quickly, stop spending uselessly, learn how to manage your money, and consequently improve your personal finances.
Why haven’t you started saving money?
Before I walk you through the steps that will help you save money, let’s start by looking at what those behaviors are that keep us from saving in the first place.
As we explained in our ebook Rica Cabeza, the money you have in your bank account is nothing more than the result of the knowledge you have and the decisions you have made regarding your finances.
So if you don’t have money to save, you’re doing something wrong with your personal finances that prevents you from achieving it.
Below we will list the Five mistakes that prevent you from learning how to save money.
Mistaking your savings for an emergency fund
There are three totally different concepts: a savings to invest, an emergency fund and a fund to spend.
Most people think that these three funds have the same purpose.
Something totally wrong.
The money you save should be invested, not used for unnecessary expenses at the end of the year or to cover family emergencies.
For these expenses you must have other funds.
Give yourself the opportunity to spend your money before you save it:
If you have money available in your account, you may find ways to spend it.
To avoid this, you perro automate your savings or have a separate bank account that you don’t have available on weekends.
In this way, if you automate saving, the money you have in your account will be available for your expenses and lifestyle.
However, what is the reality? The mistake is that you spend first and then save, when the process should be the opposite.
Not taking advantage of technology to control your expenses:
Just like there are applications to earn money, there are also some aplicaciones that allow you to keep track of your finances, they tell you in which category you spend your money, among other valuable information.
Some, like Mint, Money Control and Pocket Money, even allow you to backlink your credit card, so reports are created automatically.
Not having goals to save money
If you don’t have a financial goal, there’s no point in wanting to learn how to save money.
To fix this, equipo a deadline and an amount you want to hit by that day.
This will motivate you to achieve it.
Save without paying your debts
Saving having debts does not make sense.
It is preferable that you first learn how to get out of debt, avoiding paying high interest and long installments over time.
When you save without paying debts, you have to take the interest that your savings generate to pay the interest on your loans.
Something that doesn’t make sense.
How to save money in a short time, keys and tricks to achieve it easily:
Once we make clear those mistakes that are made and that prevent us from saving money, now let’s review the keys that will facilitate the process, which will allow you to save a high percentage of your income, which will translate into better personal finances.
1. Buy in bulk what you use frequently
Take the account of how long the products you consume the most last and buy in bulk, it is quite likely that you perro get a cheaper price.
If you think that 12 units or more is too much for you, you perro agree with family and friends to buy these elementos, so that everyone perro cover the need to have them paying much less, since the payment will be made by everyone in equal parts. .
In the case of fruits and vegetables, make sure you buy what is necessary.
Not only will they be fresher, but you’ll save money by not throwing away every time they go bad in the fridge.
Saving money is about being willing to postpone an unnecessary expense that does not add up in your life, to invest it in your future.
2. Disminuye lugar de comidas meals
This implies that you learn to plan and cook your own food at home.
To start, you cánido review what you have in your fridge, what is good, what you cánido use and which products have expired.
When buying food in supermarkets, consider the following consejos:
- Buy the supermarket brandif you like the flavor of the brand and find it quality, you perro save money.
- Opt for non-canned foods, fresh and grain products are usually cheaper and healthier than canned products.
- use coupons, these have discounts depending on the day of purchase and the type of product.
There you cánido save some money.
- Although it sounds curious, do not go to the supermarket when you are hungry or have not eatensince anxiety could lead you to make unnecessary purchases.
Additionally, if you really want to learn how to save money and lead a minimalist lifestyle, start by stopping buying coffee on the street, which is expensive, and stop buying bottled water.
Buy a thermos and fill the tap water, additionally buy a good quality coffee and prepare it at home.
3. Check your home utility bills
The problem is not the amount you pay for utility bills, but that you don’t actually use these services.
For example, if you rarely watch televisión, cancel this service and just pay for Netflix.
Another thing you could do is ask your Internet, telephone and cell phone providers if they have better offers or discounts, you will most likely get a discount.
Finally, check what subscriptions you have (magazines, newspapers, monthly plans) and ask yourself if you are really consuming this content.
If not, cancel these plans and use this resource for other things.
4.
Consciously use the appliances in your home
Learning how to save money in this category is relatively easy, especially when you develop good habits that make the process easier.
For example, you perro start by turning off the air conditioning in your house, so you will stop paying such expensive energy bills.
It’s all about habits and routines that make it easy for you to save money.
Another change you perro make is to stop doing laundry several times a week and start accumulating loads of clothes.
In this way you will save water, soap, energy and even time.
On the other hand, as far as possible, do not use the dryer, which tends to damage clothes and is an enemy of your pocket with those gas and electricity bills.
5.
Think of your money in terms of time
Surely in this way it will be much easier for you to save money; For example, if you earn $10 an hour, every time you buy a $5 coffee, this is equivalent to 30 minutes of your life’s work.
This applies to any type of financial decision you make.
Every time you go to spend money, think about the time it took you to get it.
Surely you will be much more aware when making a purchase.
6. Shop smart
Learning how to save money doesn’t orinan you stop buying things you need, or really enjoy.
Rather, it’s about making sure every penny you spend is well spent or well spent.
Here are some consejos for smart shopping:
Quality purchases:
To make smart purchases, the first thing you should do is buy quality products.
Many people think that they are “saving money” by buying cheap things, when in the long run, they end up spending more than twice as much to replace what quickly breaks down.
Spending $30 every three months on a pair of shoes could be replaced by about $60 once a year.
Compare prices:
The second thing is to make sure that you are making a good purchase, this means that before buying something you compare the prices that you are getting with other sources.
You perro earn money en línea, or save it, if you find the same product, or a used one of good quality on the web.
Impact of your purchase:
Before you buy something, ask yourself what impact that product or service will have on your life.
You will most certainly control and terminate your impulse.
Another way to control yourself is when you go to make a purchase that has a discount, is to ask yourself if you would buy it if it did not have a discount.
If the answer is no, you probably don’t need it.
Finally, you will be able to establish rules so that learning how to save money becomes automatic; You cánido escoge that to spend 50 dollars you will have to wait at least two days, or change the frequency of certain expenses, like the coffee you buy every morning, make it a weekly habit.
Invest your money, where you invest your time:
This is a very good way to make smart purchases, since you will be investing your money in products, services and experiences that you know you will use.
For example, if you have healthy habits like running, you cánido invest in good running shoes; If you really enjoy your time in the gym, buy a good outfit to attend there.
This type of thinking drives away superficial things that do not add value to your life.
7. Learn to use your credit cards
As we explained in the Zero Debt ebook, credit cards cánido be a very powerful and useful tool if you know how to manage them well.
However, when we use them indiscriminately and without good planning and knowledge, they impede your search for how to save money.
To begin with, if you have several credit cards, you will be incurring greater financial expenses, as well as your borrowing capacity, something negative if you are later thinking of saving to buy your first home, or any other important investment.
So, to put them to good use, here are some recommendations:
Know the financial cost:
Using credit and debit cards have a cost.
These range from withdrawing money at an ATM to the interest rates charged for using a credit card.
So every time you escoge to pay for a 36-month purchase with your credit card, you will be paying almost double for the same product, depending on the rates in your country.
Identify important dates:
Credit cards have two important dates: the cut-off date and the payment due date.
The first date consists of the day of the month where expenses are cut off; For example, if your date is 15, all the purchases you make until that day will arrive in your next statement.
Those purchases that you make from the 16th onwards will not arrive in the statement of the next one, but rather the one that follows later.
The second date is the maximum day of the month that you have to pay.
If you leave your card payment until the last day, it is possible that you let it pay and end up paying late interest, which is usually the highest in the market.
Responsible use of these plastics:
Putting your credit cards to good use implies that you activate alerts for your purchases with these plastics.
In this way you will be more secure and you will avoid fraud, as well as having greater control over your expenses.
Lastly, avoid paying small sums of money with your credit card.
It happens that you usually lose track of money and it seems to you that each purchase is insignificant, the problem is that there are hundreds of them.
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8.
Smart management of your transportation costs
Knowing how to save money is a matter of using your resources properly, just like taking care of those assets you have.
One of the most profitable businesses that you perro do in your life is to use the bicycle to go to work.
Not only will you save money by avoiding the car or public transportation, but your physical health will thank you.
Now, if you frequently use a car or motorcycle, here are some practical consejos that will save you money in the long run:
- It has been shown that putting gasoline in your car at night, and not in the morning, makes it perform better.
When you tank during the day, gasoline tends to evaporate in the heat.
- When you don’t pay attention to the witnesses of your car; such as tires without enough air, engine or filter failures, this causes gasoline consumption to increase.
- If you have a new car, it’s okey to take your car to the dealer so you don’t lose your warranty.
However, ask yourself if that oil change, or minor changes, requires taking your car to these places where everything is more expensive.
9.
Create a personal budget
If you really want to learn how to save money, you must have control and knowledge of your expenses, and for this, there is no better tool than having a personal budget.
Within this you perro have the percentage of your income that you are going to save, you will be able to monitor the monthly expenses, the categories and even use applications that facilitate the process.
Remember that what is not measured does not improve.
So to start saving money, you must first know what you are spending your money on each month.
Within a budget you must also include income, so that you know how much you earn each month depending on your sources of income, and if necessary, identify the need to increase your income.
10.
Practical tricks to save money easily
to finish this guide to learn how to save moneywe will share with you a series of tricks, or fácil practices, that will help you in your quest to improve your personal finances.
Trick of rounding money towards zero:
This trick consists of rounding towards zero the money that you do not spend, that you have in your pocket and on your cards.
For example, imagine you have $1,532 in your bank account and $235 in cash (see image).
The trick is to round both figures down to the nearest zero and save this difference.
The more figures you are willing to round, the more money you will save.
You perro start with a single figure and save $5 and work your way up to two and three figures.
The good thing about this nifty trick is that it will let you know how much money you have in your accounts since they are round numbers.
Another use that you perro give to this trick is that every 15 days, or every month, depending on the way you receive your income or salary, you save the rest that you have in your bank account and cash.
For example, if you have $75 in your accounts with one day left to get paid, deposit the remainder in your savings account. In this way you will be more applied with the way you spend, since you will not have that plus mattress the following month.
Create a dedicated savings account:
When you mix the money you are saving with the money you use in your day to day, it is very easy for you to end up spending it.
So that this does not happen, create an exclusive savings account, you perro even create an investment account, so that these savings generate interest.
Every time you deposit money in this account, even if it is minimal, you will be investing in your future, so do not wait to invest your money, but invest and then wait.
Recommended books:
Start saving money today:
If you are really interested in achieving your financial independence, you must be very clear that learning how to save money is the first step, and one of the most important.
We hope that with these steps and tricks you will not only start saving, but also change your mentality regarding your personal finances.
Saving depends on your habits, so review how you live your days and avoid those situations or moments in which you know you will spend unnecessary money.
Remember that it is not about stopping living, but about being clear about your priorities and acting based on them.
Continue reading: The effective saving method that about 50% of people do not apply
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