Set a savings goal
Regardless of what you're saving money for, set it as a clear and measurable goal. For example, buying an apartment, a car or going on vacation. Having a firm idea of where the money is being saved allows each person to work on the task more focused and efficiently.
Once you determine your goal, create a plan (personal map) that will help you get to the finish line. This “route” determines how much money you should save each month, taking into account your income and basic expenses. Planning will protect you from overspending.
Why do you want to spend money?
Because people are motivated to do this by the desire to experience positive emotions (in addition to the necessary expenses for natural needs). Day after day changes monotonously, there are very few truly bright moments. I would like to bring well-deserved variety to the drab everyday life. This joy seems to come from the acquisition of various things.
It’s as if a person gives himself an injection of fun and fresh impressions. He experiences new feelings, he is pleased with himself and the events taking place. And if you can brag about your purchase to others, then there are even more emotions. However, like the effect of the medicine, these emotions end quite quickly. For some time the calmness is not annoying, but then again you want fresh emotions.
Determine your budget
Expenses should not exceed income. So know how much you earn and spend. Keep track of your purchases and make daily entries in a spreadsheet. Excel or special mobile applications are suitable for this. Over time, you will see how your funds are spent every day, week, month and year.
A budget will help you analyze your personal financial situation and pinpoint the holes into which money is flowing.
Maintain discipline. Before every purchase, think about how necessary it is now and whether it will be relevant in a week. This technique will remove the most obvious financial “mistakes”.
Little tricks
Don't think that brands are the only worthy products. There are manufacturers that have not become brands, who are no worse and at the same time sell their products cheaper.
If you want to buy something expensive at a pharmacy, it’s a good idea to find out if there is a cheaper drug containing the same substance. In a word, not all worthy manufacturers decide to advertise. Maybe their budget doesn’t allow it yet, but we know that advertising is expensive.
ATMs of third-party banks charge fees for services. We shouldn’t forget about this.
On a note! When participating in sales, you should look for discounts and take advantage of only significant ones. If one person buys 1+1=3 things, then there will be two extra things.
You should only buy energy-efficient electrical appliances. Even if they cost more, it will save money. If you have a car, you need to pump up the tires on time.
If you only need to use devices like a sewing machine or chainsaw once a year, it's best to simply borrow them from someone you know.
First balance - then expenses
Simply put, pay your basic bills before you go to the party. Without knowing the personal or family financial situation, a person is unable to spend money responsibly.
It may seem that people always have a rough idea of what their financial situation is. But that's not true. A person recognizes this when there is a clear picture and a budget drawn up. Thus, expenses subconsciously become deliberate.
To stop wasting money, don’t forget about bills and obligations.
What's the best way to save money?
There are three savings strategies:
— save money immediately after salary;
— set aside the balance at the end of the month;
- a combination of the first and second strategies.
“I am a supporter of the latter, when you have a rule to make mandatory savings immediately after receiving income and then try not to spend all the money within a month, so that at the end you can distribute the remainder between goals,” explains Khalimov.
Don't hand over your currency. How to profitably store savings in dollars and euros Read more
Eat at home
In the refrigerator and in the nearest supermarket there is food that is healthy, satisfying and several times cheaper than dishes from restaurants and cafes. Moreover, before heading to the grocery store, check the refrigerator and kitchen shelves again - there are probably still enough supplies there. Eat before going to the store. Being hungry, we buy a lot of extra things.
Follow a simple rule: you need to go grocery shopping when there is no food in the house. This helps reduce the amount you spend on food.
How to stop spending a lot of money on food
We need to stop spending money on food that is not needed. Most people spend a lot of money on food. Moreover, often during overeating a person does not even feel pleasure. Excess weight is the scourge of our time.
Meals served in restaurants are not as filling as homemade meals and do not contain as many nutrients. The nearest supermarket will provide a wide selection of quality products.
On a note! Before you go to the store, you need to eat. Under no circumstances should you go into the store hungry!
You should take food with you to work. You can wrap the pie prepared the day before well and share it with colleagues. Don't waste money on a canteen or business lunch. In the end, we go to work not to waste money, but to earn it, no matter how trite it may sound!
You shouldn't order pizza at home when you can cook it. Moreover, home-cooked pizza is made from not very expensive ingredients that are in no way inferior in taste to the products served in cafes. It is advisable to be able to prepare such delicious dishes as rolls, since one set of them is incredibly expensive in restaurants.
Opt out of catalogs and email newsletters
Retail chains are trying to attract attention through advertising catalogs and mailings. They want you to open the booklet, and some new promotion will convince you to buy. Just don't take this correspondence.
If you receive an email newsletter, please unsubscribe from it. The link for this is provided in small print at the bottom of the email.
Hide your credit cards
Credit cards can be a person's worst enemy when trying to save money. Try to put them out of reach. For example, a safe. Of course, there are no obstacles to getting the card back from there. But the essence of this technique is to slow down the interval between the moment when the idea to spend money comes to mind and the moment when you are already holding the card in your hands to pay. The conditional obstacle reminds you why you hid the card, and subconsciously suggests that taking it now and inflating the costs is a bad idea.
Do it yourself
Instead of paying a specialist to repair your apartment, break down appliances or plumbing, solve the problem yourself. A service is convenient and profitable when it helps you with something you can’t handle. In other cases, you are essentially trading your free time for money you have saved. In the future, it will be nice to say “thank you” to yourself for this.
Consume less water
Utility bills increase every year, and one of the most significant expenses is water. It definitely should be used more carefully. We offer several ways:
- Install the counter. This will help save money if fewer people live in the apartment than registered. And it’s easier to control water consumption for a family when there is a meter;
- Use your dishwasher and washing machine wisely. Run them only when there is a full load. Turning on such devices half empty is a waste of not only water, but also electricity;
- Change your plumbing fixtures to economical ones. Water consumption could be reduced by at least 5,000 liters of water per year.
- Take baths and showers faster. The savings are obvious: the faster you wash, the less water is wasted from the tap.
Be more careful with electricity
Saving electricity is easier than saving water: the simplest steps will significantly reduce your monthly payments. For example:
- Buy energy-saving appliances. It is usually more expensive, but over the years it will save you thousands of rubles;
- Use the equipment you already have at home rationally. We are talking about stoves, washing machines and kettles, which are better to be turned on less often, but fully loaded;
- Use your equipment wisely. Always unplug from electrical outlets. Even when the device is turned off, energy continues to “leak”;
- Sign up for double tariff. This is suitable for those who work at night and hardly turn on electrical appliances during the day.
- Install counters. Installation is expensive, but in the future you will definitely not overpay, as undifferentiated tariffs suggest.
- Replace light bulbs with energy-saving ones. Classic incandescent lamps consume 5-8 times more energy than fluorescent or LED lamps.
What about saving money if you're away? This advice concerns saving water, gas and electricity - the entire housing and utilities complex. When leaving, the owner of the apartment can submit an application to stop providing him with utility services. Accordingly, he will not have to pay for the time of departure.
Consider changing your tariff (for TV, telephone and Internet)
Most of us choose Internet providers and telecom operators at random. And we connect the service package that the consultant recommended. To avoid overpaying, analyze the market at your leisure: what prices do companies offer in your city, what is the range of services. Even if you chose the tariff consciously, review the line every year: mobile communications and the Internet are rapidly becoming cheaper.
By the way, functions you don’t need can become a burden on your budget: paid antivirus, an expensive package of channels, free minutes for calls to other networks. They are included in tariff plans automatically. If you don't need certain options, save money by changing your tariff or service company.
Buy in bulk whenever possible
This tip is the first one that comes to mind when you hear the word “savings.” Buying in bulk is really profitable, but not easy: if a person lives alone or with a small family, he does not need food in huge quantities. The solution is to cooperate with acquaintances, friends and relatives. It’s better to buy something that lasts a long time - cereals, pasta, sugar, canned foods, drinks in tetra packs, etc.
Take a break before making important purchases
Large expenses - the purchase of household appliances or a car, a trip or a down payment on a mortgage - are best planned several months, or even years in advance. Firstly, it will protect you from impulsive, rash steps. Secondly, it will help you make the best choice. For example:
- If you have to buy expensive equipment, study all the prices in the city and the current model range. Perhaps it is more profitable to order gadgets abroad, and you do not need those new products that retail chains advertise due to the abundance of functions;
- If you are going to take out a mortgage, choose a program with good conditions. Don’t focus only on the rate: the bank’s reliability and convenient service are also important.
In everything related to banking products, we offer the functionality of our website: catalog of deposits, loans, mortgages, etc.
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Use the Internet for shopping
Shops and boutiques inflate prices for goods. This is due to their expenses for renting premises, hiring staff, delivering things from warehouses, etc. If you do not include these expenses in the price, the store will quickly go into the red. But this should not worry the buyer, whose priority is a good price, quality and a large assortment. Therefore, many people buy things via the Internet - in their own country or from abroad.
How profitable is this? Practice shows that in an online store you can buy things 10-20% cheaper than in retail. Many sites also hold sales and promotions, which are convenient to monitor through notifications and newsletters.
Find out the real cost
When you want to make a purchase, check its “true cost” for yourself. Calculate how long it takes to earn the money needed for this purchase.
For example, if you earn 300 rubles per hour, and you need 1,500 rubles for a purchase, you spend five hours of your work on it. Converting your cash price to an hourly rate this way helps protect against spending that you might regret in the future.
Read: What skills to improve to become financially successful
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Understanding the problem
You should always start simple. If you remember your purchases, they follow the same predetermined scenario: a person buys a beautiful thing, rejoices at the acquisition, but after a few hours the euphoria passes and a feeling of regret about the money spent comes.
The fact is that emotions come and go, they follow the general cycle present in human nature. When the joy of a purchase wears off, it gives way to disappointment and you want to buy something again.
Now the problem is clear, and all that remains is to force yourself to stop wasting money. Common sense will help here.
On a note! You should proceed from the necessity of the purchase. It is also worth asking yourself whether you can buy an analogue cheaper. It would be a good idea to think through your budget plan for a week or a month, sometimes even a year, in advance. Costs can be recorded in a personal expense ledger.
These are the simplest things, but usually people do not resort to them due to laziness. A product is valuable only if, after using it for a long time, satisfaction with this thing does not fade and its practical and emotional usefulness is not lost.
Buying unnecessary goods often requires an amount that can be called “money that I don’t have.” In this case, it is impossible to buy a product without taking out a loan from a bank, which you will then have to repay over three years.
If a person wants to become successful, he should not waste money, but spend it only on truly worthwhile things.
Correct handling of money:
- expenses for really necessary things;
- start saving money for a deposit;
- investments in securities;
- fulfillment of real, innermost desires.
