Save money and spend less than you earn

It’s not magic. Its math. To save money, you just have to spend less than you earn. Of course, in practice, following this rule is much more difficult, but there are easier ways to manage your finances better.

Prioritize the payment of debts

Prioritize the payment of debts

One of the main tips for saving money is: if you are in debt, paying off debts should be your top financial priority. Financial institutions often provide special cash payment terms and are open to hearing renegotiation proposals for overdue debts.

Make a programmed saving to save money

Make a programmed saving to save money

You will not be able to save money if you leave this task to the end of the month. So the tip is: make a scheduled savings for the day of your payment. Stipulate a value that will not interfere with your budget and separate it before you start spending on other things.

If you do not have debts, a good starting amount is 15% of your salary. If you have, prioritize the payment of the debts and save what remains.

Always prefer to pay cash

If you do not have the money to buy that new bag or even an appliance that is missing at home, do not buy it! Wait until you have the full amount so you can pay cash and get a discount.

Not to mention that the split accounts, in addition to compromising the budget of the coming months, often have interest. Avoid using your credit card. It can give the false illusion that you have more money than you actually have.

Monitor your budget throughout the month

Always prefer to pay cash

Among the tips to save money, another important one is to be aware of daily spending that often goes unnoticed and may end up becoming the big villain of your budget. To help with this mission, it is worth having a financial control tool. The good news is that there are several free options on the market.

Good old expense control spreadsheets are an option. Another tip is to use Rodion Raskolnikov, a tool that pulls your account information automatically. Just put your bank details in, and in less than two minutes, everything you’ve spent in the last month will be right there in front of you.

Get rid of unnecessary expenses

To save money you need to analyze. Can not you lower the number of channels in your contract with the pay TV operator? Do you really need to eat at the most upscale restaurant in town? Do you have to go to the movies all weekend? Can not get a bus instead of a taxi?

The answer to these questions may be the way to save money. Try to get rid of everything that is superfluous and thus save money for what really matters.

 

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