Someone said: “Financial management makes me feel not free” – financial freedom is the most considerable freedom, supporting all other liberties. Without economic independence, do you have enough money and time to realize your dreams? Please believe in us! The daily financial management will give you great feelings, is an excellent habit to save money.
No matter where you are on your financial journey, you should know that anyone can turn their economic life around and start saving money. Sometimes all it takes is the first step in the right direction to get things moving in your favor. However, as with most things, sometimes that very first step is the hardest part.
Saving money is the first step to build in the financial management process to achieve wealth.
We all know that saving money is essential, but many of us struggle with the mind every day to make it happen.
Not all of our tips will apply to everyone. Just go through the list and find some ways that do apply to you and use them in your life. When you do, you might quickly discover that you are saving more money than you ever thought possible.
Here are ways to help you start to save money even more today:
Record your income and expenses
Do you know exactly how much money you have each month?
Someone will answer “if the money is not enough to spend, there is no balance.” You do not know how much you have spent and always wonder, “where has my money gone?”
Also, many people know the amount on their final paycheck. But they don’t know how much they spend. They cannot control their spending each month just because:
Lazy day-to-day expenses: You do not update your everyday expenses. It is hard to grasp your finances and hinder the execution of your savings plan.
Don’t manage the cash flow: this will lead to a difficult life situation. Because sometimes you have to choose between saving and essential things that cost a lot of money at a time.
It is always awkward when your money goes away quickly, and you are in a state of anxiety. This doesn’t sound like fun.
Record income and expenses for easier money management
So, make a habit of recording your income each month and detailing your costs each day. You will gradually control the money leaving without reason and will have new balance every month.
Set clear goals
Talented speaker Brian Tracy once said:
“The goal allows you to control the direction of change in the direction that is beneficial to you.”
Setting goals is essential in whatever activity or field you want to succeed. However, you need to set goals clearly and logically. Avoid cases of setting goals away from reality as follows:
Set your goals too high: At the beginning of the month, you will be excited to set a goal of cutting up to 40% of your monthly expenses. Then, gradually, you will find that you can not do that. And from then on, you will not strictly obey this saving.
Set non-specific goals: you just set a general goal of how much you save. Not setting specific goals will make you not strictly implement and reduce effectiveness.
You can set specific goals as follows: “I need to save 2 billion in 10 years to retire early”, “save money for three years to get 2 billion to buy VinCity apartments”. The goal needs to be clear about the number, time, and purpose of the savings.
Make a shopping list
Making a list of your monthly income and expenses is essential to get started on the road to financial health. For small costs on essential goods, you should make a separate list. Because when not on the list, you will often shop unplanned and will easily fall into the situation “overhand forehead.”
Shopping is easy to get addicted. You should have a list of things to buy to avoid shopping too much
Purchasing the list will help you ensure your spending and will not pay you for unnecessary things. It is essential to eliminate the necessary expenditures and cut frivolous spending to increase savings simultaneously.
The mall might be a place to people watch, but it can also be packed with temptation. That is why you need to avoid the mall unless you actually need to purchase something.
Please trust me, window shopping when you are on a budget can be torture. Just unburden yourself and find something else to do when you need some entertainment. A walk outdoors, a fun puzzle, or the best movie can easily replace your regular mall shopping adventures. As a result, you should avoid the mall.
Apply the 50/30/20 rule
Managing your budget is not merely about paying your bills on time; it’s about determining what amounts to spend and what items to donate. The 50/20/30 rule is a pro-rata guide, whereby you can plan your spending by your savings goals.
To start, set aside less than half of your income for life’s essentials. This includes meals, rent, utility bills, cable and internet bills, fuel costs, or other transportation expense. It may seem like 50% is a high rate, but once you look at lists of the necessary expenses, you can see that the number makes sense.
The next step is to set aside 20% of your salary for commercial purposes including saving, repaying shopping loans, home loans, cars and financial investments or reserve funds. This category should only be added when the essential expense category has been taken into account and before you can think of anything on your expense list.
Allocate 20 percent of your income to savings and investments. This included adding money to an emergency fund in a bank savings account, makingIRA contributionsamutual fundaccount, and investing in the stock market.
Savings could include debtrepayment. Whileminimum paymentsare part of the “needs” category, extra fees reduce the principal and future interest owed, so they are savings.
The final and also the category that can make the most significant difference in your budget – unnecessary expenses. Some financial experts consider this to be a completely flexible portfolio but in modern life. Many people think that some things that are “luxurious” are an integral part of them. Just like the list of essential expenses. 30% is the maximum rate you should spend on personal life. The less money in this category, the more financially secure you will be when you retire.
Compare deposit interest rates and return on investment yields
If you intend to find an investment channel to make your savings profitable. First, consider sending money to a bank. You have more choices for the following reasons:
- Money is losing value
- Financial crisis can occur at any time
- Risk of unjust money
- Low profits cost you the opportunity to earn more money
The road to financial freedom is longer.
Money is depreciating; only investment can resist the devaluation of money
Also, in the process of investing in addition to interest each month, you enjoy the compound interest in the investment process. The compound interest rate makes your money multiply faster.
I recommend that you learn more about the courses that guide you and make decisions about choosing a channel that has a high rate of return and is suitable for investing.
Savings from the smallest actions
As far as I can tell, whether you can save as planned or not, start investing in a minor job. Pay attention to things that may incur costs such as:
- Turn off lights or electrical equipment if not in use.
- Select stores that offer discounts on similar products.
- Use membership card for more privileges.
- If you are moving near your home or work, you should walk to save gas and can take advantage of physical activity.
- Don’t spend as much on entertainment as watching movies in theaters. Instead, you can enjoy great videos on online movie sites.
- Cook yourself to be more economical and hygienic than eating out.
There are many small things you can start right away to save. It is essential that you do it right away and don’t wait until later to do so.
Perform the 72-hour test
Nowadays, many businesses use every means to attract your attention to vast amounts of advertising information and massive promotions. It is tough to keep your mind against the temptation of developments that stimulate your desire for ownership.
Because according to behavioral experts, people surfing e-commerce sites will quickly fall into a state of excitement with shopping. They are compelled to purchase by lust and advertising keywords. They can not know which items to buy and need not buy. After 72 hours, they reviewed the shopping cart to decide to buy, surprisingly, 70% chose not to buy anything, 30% decided to buy one of the items they had previously selected.
Automation
Making savings automatic. To do this is not difficult when you have a clear plan and goals. Your monthly income will be split and set aside for a savings account, or investment account, or some life insurance package. Your funds will be automatically increased over time, some of which will make you more profitable.
Save money to the right place
Since ancient times, when it comes to saving, you think of putting money into pigs. No matter where you put the money to save, there is a risk of it happening. For example, you save money by leaving the pig every day, every month and a beautiful day when you are robbed to visit your home and lose your savings. So bank deposit more secure? It can be safe to send a bank, but your money will hibernate and then it won’t work to help your life better.
And if you deposit money into an investment account, it is certainly not safe to choose the wrong market and have no knowledge of the investment. You have probably heard of many people who have been successful with financial investment and many who have lost money when investing.
How to choose the right place to save money? You need to consider your financial situation and carefully study where you let your savings ensure two factors: safety and profit.
Restrict payment by credit card
If you often choose to pay by credit card, store your credit card and keep it in a secret place at home rather than in your wallet. This will help you avoid being “tempted” when there are many attractive items on sale. But, the cash in your portfolio is not enough to buy right away.
Also, need to remove credit cards from online accounts. It’s easy to press the payment button once your credit card information has been saved to the system.
Limit spending on stress relief
We often justify spending money to get rid of a stressful working day by going shopping, beer club, or going to a restaurant with friends. However, this is a habit that significantly affects monthly spending. Instead of spending on things that don’t make you feel better, choose solutions that are both inexpensive and effective.
Exercise is always the right choice; meditation or yoga will help your mind become lighter. Reading, watching a movie, or working in your garden helps reduce stress. So spending money on short-term entertainment won’t reduce your weight in the long run.
Make gifts yourself, give them earlier than the calendar
It is also costly, especially for men, which is a gift for holidays. Noel, March 8, October 20, Mid-Autumn Festival, Valentine, etc. Even now, June 1, Tet, many children now ask for a lot of gifts. Life is so unfair for men?
One effective way to save money is to make your hand-made gifts, both meaningful and not in stock. Moreover, whether the contribution is impressive or not is essential how you give it, not the money you give it.
Also, you can use a new and different tactic: not giving on the right day, but giving a few days before the holidays, even on random days with names that you have thought of yourself like memories recite the day you found out that you love her and so on. Give other holidays. Everything is cheaper than, you can not only control the price but also give more surprise, more different. Imagine that on those big occasions, everyone will offer gifts. Then your donation will be hard to make a difference later.
Utilize online bill pay with your bank
That serves two purposes. Firstly, it keeps you in much closer contact with your money. As you can save a close eye on your balance and be that much less likely to overdraft.
Secondly, it saves you money on stamps and paper checks by allowing you to fill in an online form, clicks submit and have your bill paid. Try it out – take advantage of it if you are not already. Some of the excellent free online checking accounts offer this perk.
Never give up
Whenever the struggle against debt feels like it is too much, read a personal finance blog. Remember that there are a lot of people out there fighting the same fight. You should read around through the archives and learn some new things – perhaps get inspired to keep going, no matter what.
As noted above, “saving money” is only the first step in the financial management process. What you need is to increase your financial knowledge to apply that knowledge to business management to achieve your goal of financial freedom. Specifically, create as many sources of passive income and improve your account balance as possible. Then, new savings become useful.
There are many ways to help us optimize our daily expenses and save more money. Setting your reasonable spending plans and following those plans will help you balance your finances most effectively. You will save money more!
Thank you for taking the time to read our article.If you have any questions you need, please feel free to comment under the comment section, we will answer you as soon as possible.
Also, you can read “How to make money fast of Japanese” “How to build the social relationships for women“, “How to keep your family healthy and happy“, “How towake up early and still be productive”,“How to Attract A Man – Get A Boy Friend”to know more about other topics.
