One of the basic principles of good financial management is to save money. There are plenty of foolproof tips and recipes on how to manage your funds and make them last longer. But many are unaware that it is not necessary to stop living well to save money on expenses. You can indeed apply financial organization strategies that allow you to save the money you have left, without giving up a comfortable life.
The first thing to do to get started: you need to change your behavior. So, start recording all your expenses. You can do this on a board or using a notepad. Learn how to make an expense sheet to control your money. This will allow you to see the habits to improve in order to change your lifestyle while continuing to enjoy it.
1. 50-15-35 rule
The 50-15-35 rule is very simple. It ensures good financial management while optimizing savings. In general, it consists of dividing the monthly income into three categories. For essential expenses such as rent, bills (energy, telephone, insurance, connection to the house, etc.), school fees or health costs, 50% of the salary is reserved. The 15% must also be reserved for financial priorities such as the repayment of debts in the event of credit. If you have no monthly payments to pay, this share will serve as an emergency reserve or will be put in the piggy bank. The remaining 35% can be used to maintain your lifestyle.
2. Don’t do a thing unless it actually saves money
You don’t have to go with friends or family members to save money on vacation expenses. What can really bring great savings is to stop changing cars every year, for example. Or stop signing up for the special check every month to pay hundreds of dollars in interest.
3. Have goals and discipline
When you start saving, having a goal makes discipline easier. In other words, remember to ask yourself the right question: what are you saving money for? So the answer will be your goal.
If you decide to save, don’t change your mind the following month. The idea is to bet on the savings made which will be automatically debited from your accounts. Thus, you do not risk spending the money you have set aside. This way it will also be easier to apply the 50-15-35 rule.
4. Balance your budget
Balance the amounts used for unnecessary purchases and errands with the money you set aside for other expense categories. It really pays to be flexible. Indeed, if you want to buy a fairly expensive shoe or change your mobile phone, for example, compensate for these amounts spent by reducing your trips to bars, restaurants and clubs a little. The manicure session at home can also be canceled for this month for example.
5. Find other sources of income
It is very common these days to find people who maintain two career paths at the same time. While in the first job, they maintain financial stability, in the other, they develop a plan B or increase the amounts of money earned.
6. Always save at the beginning of the month
Saving at the end of the month, when you’re about to get paid, never works. If you always want to withdraw the same amount from your accounts to save, you must do it correctly in the first days of the month. The advice: try to withdraw this money, even if it is for investments.
7. Change the credit card to a “non-annuity”
Credit cards are never good allies when the idea is to save. However, they can often save you from a difficult situation. The solution ; consider exchanging your card for a non-annuitant card. This will make it easier to purchase consumer products while allowing you to avoid unnecessary expenses.
8. Always try to buy cheaper
Haggling is no shame! Always look for rewards and discount coupons. In addition to discount coupons offered by merchant sites on the Internet, you may also receive other promotional offers or free products as gifts.
9. What to do with recurring payment services?
You don’t have to give up Netflix and Spotify to save money. But you will still have to go to the website or call to find out about the new plans offered by the service provider. If you want to stop monthly subscriptions.
Another solution to save money is to check if the company offers a semi-annual or annual subscription offer. In general, a formula to be paid every year or every 6 months makes it possible to obtain a generous reduction as well as advantageous services.
Note also that renting a combo service (TV/Internet/mobile) with the same provider may turn out to be cheaper than buying individual services with different companies. You should therefore look for the combination that suits your profile in the region where you live.
10. Save any extra money
Do you have money left over at the end of the month? Put it away, or better put it in the piggy bank! One of the problems many savers face is getting extra money in the month, but not having the discipline to invest in a good financial solution. It is therefore better to save the remaining funds instead of spending them unnecessarily.
Bonus tip: learn how to build your wealth
Do you know where to start a wealth creation strategy? If the answer may seem difficult and complex, it is not necessarily the case! With the right techniques, you learn to have a healthy relationship with money when it comes to saving, spending, and paying the bills. In short, understanding the market and financial management increases your chances of making better choices and transforming your life financially.
