Not all people know how to control their finances. As soon as additional income arises, new expenses immediately arise. But is it possible to save in such a way that it does not cause a feeling of limitations? Usually a person avoids even the word economy. And it’s not that people don’t know how to save, more often than not they simply don’t want to do it.
First, with the word economy, people understand some kind of limitation. And, as you know, a person does not like to limit himself. Thinks it’s better to live in grand style and enjoy to the maximum.
Secondly, for many, savings are considered unnecessary at all. Usually such people think that saving a couple of thousand a month won’t make you richer. But this is a delusion.
What expenses are there.
The costs are divided into mandatory and optional. Usually money goes away because of additional articles. Therefore, it is extremely important to control exactly these expense items.
Obligatory expenses include paying for utilities, transport, loans, renting an apartment, mortgage or insurance, tuition fees, mobile communications and the Internet, food and household chemicals, seasonal purchases of things, visits to doctors and treatment.
The rest includes additional items of expenditure. These are gifts, entertainment, and purchases that could have been avoided. For example, coffee to go or going to the cinema with friends or a significant other.
Checklist of actions to save money.
1. Make a plan for spending for the month. Define the budget categories (food, transportation, food, etc.) and the ceiling for expenses that cannot be exceeded.
2. Keep track of expenses for the whole month in the selected categories. To do this, you can install special applications on your phone that control your expenses. So you will analyze what you spend the most money on and understand where you can save it.
3. Make a list of products. Very often people buy a bunch of unnecessary items. Especially when they see yellow price tags, hot deals, and so on. This is not a reason to spend too much. Think well ahead of time what you really need. And look less around in the store.
4. Shop smartly. Weigh the pros and cons of this purchase and decide whether this thing will be relevant for you over time.
5. Don’t look at new items. Fashion for them is very fleeting.
6. Use cards as little as possible. The brain accepts electronic money very badly, and a person spends it much easier than paper bills.
7. Eat in front of the store. Usually a hungry person buys everything. Even what he doesn’t need.
8. Master online shopping. As a rule, everything on the Internet is much cheaper than in stores.
9. Do not delay going to the doctor. It is always more expensive and more unpleasant to be treated. As they say, forewarned is forearmed. Visit your dentist once every six months, and have a scheduled check-up once a year.
10. Watch out for promotions and sales, thanks to them you can save a decent amount of money. For example, you can buy seasonal items at the end of the season at sales (jackets in the spring, summer clothes in the fall). But only buy what you really need.
11. Avoid loans. As a rule, you overpay for a loan several times more than the cost of the thing itself, which in fact you cannot afford.
In our difficult time, the issue of reasonable cost optimization is especially acute. Strive to always be in the black. After all, only thanks to savings can we manage our budget, expenses and create a financial cushion for ourselves in the form of savings.