How to save money: everything you need to know about saving

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

Useful recommendations for those who want to manage their funds competently.

When to start saving

Perhaps the answer will unpleasantly surprise you: immediately, when a stable income appears. The first money of your own is a great temptation. You want to spend them on entertainment, clothes, new gadgets - in a word, on everything. Alas, life puts everything in its place: sooner or later we realize that it would be nice to have an emergency supply that will help out in difficult times.

Going to zero, interrupting from paycheck to paycheck, and even more so getting into loans is not the most successful model of money management. If you have disposed of funds in this way until now, you are probably lucky not to face serious problems when money is needed here and now. There is no guarantee that good luck will accompany you in the future.

Set aside 10-15% from the next salary - this money will become the basis of your financial safety cushion.

They must not be touched under any circumstances. Keep saving until you have an amount equal to your salary for at least three months, or better for six months. Done, now you have a supply for a rainy day, but this does not mean that you can forget about savings and recklessly reckless.

Money that has been set aside in excess of the amount needed for peace of mind can be used to achieve various goals. For example, major purchases, renovations, or a vacation trip. You cannot spend funds from the emergency reserve on this. There is nothing worse than being out of money at the right time.

How to save money

If you have a decent salary but can't save, it's time to figure out what the problem is.

1. Analyze your expenses. Maybe you are unable to refuse regular trips to the bar with friends, are prone to impulsive purchases, or simply do not consider it necessary to find the best deal on the market before making major purchases? Be extremely honest, there is no point in deceiving yourself. If you use the bank's mobile application, it will tell you where the money is going.

2. Make a budget for the month. Immediately after you receive your salary, send part of the money to the formation of an airbag, then pay all the bills. The remaining amount is what you have to live on until your next paycheck. Divide it into equal parts, the number of which is equal to the number of weeks until the next receipt of money. Just a month of living on such a system will help you understand what costs should be optimized.

3. Spread your large spending over time. Several large purchases in one month are sure to undermine your budget. Tip for the future: When it comes to seasonal shopping (for example, clothing or leisure and sports goods), do not ignore sales, they will help you save a lot.

4. Use credit cards wisely. Credit cards are very useful if handled correctly. Study the conditions: how long the interest-free period lasts, what advantageous offers the bank has - maybe you will receive an increased cashback when paying with a credit card. Create a bunch of credit and debit cards: pay with a credit card with an increased cashback and immediately transfer the amount equal to the spent amount from the debit card to it.

5. Any unplanned income should be sent to the piggy bank. Suppose your salary has been raised - save the same 10-15%, but this time from your current income.

How to store accumulated

The financial airbag is best handled with extreme care. It should always be at your fingertips: dark times will not notify you of their approach.

The most obvious way to store funds is a bank deposit, savings account or debit card with an interest on the balance.

By receiving interest on a deposit or account, you offset the impact of inflation on your savings. It should be remembered that bank deposits are insured in the amount of 1.4 million rubles, including accrued interest. If you suddenly have accumulated more, do not keep your 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 on what risk you are willing to take. Generally, the higher the risk, the higher the potential return, and vice versa. You can invest on your own by registering an account with a broker, or trust professionals, for example, purchase a mutual investment fund. Now the financial market offers many options, including for novice investors with small starting amounts.

The main rules for independent investors:

• Do not store all eggs in one basket.
• Acquire only those assets that you absolutely understand (you know what it is and how it works).
• Don't risk the necessary in an attempt to get the excess.

What to do if you can't save

In theory, any sane person understands that savings are essential for a quiet life. In practice, not everyone succeeds in creating a stock of money for a rainy day: someone cannot put things in order in monthly expenses, someone has no idea how to properly store the accumulated funds.

On November 1, the next lecture from the cycle "Financial Environment" will take place. Its theme is “Savings: Why are we needed, how to create and where to store”. Natalya Smirnova, a financial advisor, expert in financial literacy and general director of the consulting company "Personal Adviser", will conduct an educational program on the topic of savings and tell you how to gain financial independence and manage your savings wisely. This is the last event in the first lecture series, with the next one starting in February 2018.

The lecture will be held in the "Biblio-laboratory" at the "Winzavod" (Moscow, 4th Syromyatnichesky per., 1, p. 6, entrance 4). Admission is free, but seats are limited. Follow the link below and register in advance.