Useful recommendations for those who want to competently manage their funds.
When to start saving
Perhaps, the answer will unpleasantly surprise you: immediately, when a stable income appears. First money is a great temptation. You immediately want to spend on entertainment, clothes, new gadgets – in short, on everything. Alas, life puts everything in its place: sooner or later we understand that it would be nice to have an untapped reserve, which will help you out in a difficult moment.
Go to zero, live from paycheck to paycheck, let alone get into loans – not the most successful model of money management. If you still managed the funds that way – apparently, you were lucky not to face serious problems, when money is needed here and now. There are no guarantees that success will accompany you in the future.
They can not be touched under any circumstances. Continue to postpone until you get a sum equal to your salary at least for three months, and preferably for six months. Done, now you have a stock for a rainy day, but that does not mean you can forget about the accumulation.
The money that you managed to accumulate in excess of the amount necessary for peace of mind can be channeled to achieve different goals. For example, major purchases, repairs or a vacation trip. It is impossible to spend money on this from an untouchable stock. There is nothing worse than being without money at the right time.
How to save money
If you have a fairly high salary, but you can not save, it’s time to figure out what the problem is.
1. Analyze your expenses. Maybe you can not refuse regular trips with friends to a bar, are prone to impulsive purchases, or simply do not consider it necessary before large acquisitions to find the most advantageous offer in the market? Be extremely honest, to deceive yourself there is no point. If you use a mobile application of the bank, it will tell you where the money goes.
2. Make a budget for a month. Immediately after you receive a salary, send some of the money to the formation of the airbag, then pay all bills. The remaining amount is what you will live on until the next salary. Divide it into equal parts, the number of which is equal to the number of weeks before the next receipt of money. Just a month of life on such a system will help to understand what costs should be optimized.
3. Distribute large expenses in time. A few large purchases within one month will surely undermine your budget. Advice for the future: if it is a question of seasonal purchases (for example, clothes or goods for recreation and sports), do not ignore the sale, they will help to save a lot.
4. Use your credit cards wisely. Credit cards are very useful if you treat them competently. Examine the conditions: how long is the interest-free period, what favorable offers the bank has – maybe when paying by credit card you will receive a raised cashback. Start a bundle of credit and debit cards: you pay with a credit card with a raised cashback and immediately transfer to it from the debit card the amount equal to the spent.
5. Any unplanned income should be sent to the piggy bank. Suppose, you have raised your salary – postpone the same 10-15%, but from the current income.
How to store savings
The most obvious for storing funds is a bank deposit, a savings account or a debit card with a percentage on the balance.
Receiving interest on a deposit or an account, you compensate for the effect of inflation on your savings. It must be remembered that bank deposits are insured, including accrued interest. If you suddenly accumulate more – do not store money in one bank.
If you have already formed your reserve capital, further savings can be invested in order to earn some money. It is important to decide what risk you are willing to take. As a rule, the higher the risk, the higher the potential yield, and vice versa. You can invest yourself by placing an account with a broker, or trusting professionals, for example, to acquire a Unit Investment Fund. Now the financial market offers a lot of options, including for start-up investors with small starting amounts.
The main rules for independent investors:
- do not store all the eggs in one basket;
- acquire only those assets that you absolutely understand (you know what it is and how it works);
- do not risk the necessary in an attempt to get redundant.
What to do if you can not save money
In theory, any sane person understands that for a quiet life, savings are simply necessary. In practice, however, to create a reserve of money for a rainy day is not obtained by everyone: someone can not put things in order in monthly expenses, someone has no idea how to properly store the accumulated funds.
In the following articles, we will tell you what you need to do for this.