There are different strategies for saving money, and it is never too late to change your own to accumulate funds faster, more and without compromising the quality of life.
If you have already started saving money, congratulations – this is a reasonable step towards a secure future. Ideally, your cash “airbag” should be enough for six months of life without financial income. But even if every month you make a profit and increase your savings, this does not mean that your strategy is perfect.
Strategy number 1. Saving what remains after paying all expenses
So, you pay monthly bills, maybe spend a little on entertainment, and then everything that remains is sent to the bank account. Knowing that you, in principle, have money, you can spend more than you should, and then spend the funds intended for accumulation. In addition, it is difficult to set a specific goal for accumulation, because you can never tell for sure how much will remain after all costs. Instead, you can try another way.
- So how should it be? The very first bill you need to pay after your salary is your savings account. Make it your rule and take it as an obligatory and most important part of payments (of course, if you have enough money to pay all other bills).
- Create an automatic transfer of money from your bank card to a savings account at the beginning of the month or from each cash receipt. If you just put such an automatic transfer of money and forget about it, after some time the amount of accumulated funds will surprise you.
Strategy number 2. I transfer money to a savings account
So, you regularly save money – that’s great. And the savings account with a plastic card is very convenient. But here there are minuses.
If you run out of money, you run the risk of withdrawing your savings or even spend it on an unexpected but very welcome purchase. And, most likely, you will do it, because it is very easy to withdraw money: it is always within reach, you don’t even have to go to the bank, just use an ATM.
- So how should it be? Open a deposit at the bank for 6 months or a year. So you definitely will not spend the money intended for saving. Just don’t invest everything. Leave some in your regular savings account for emergencies.
Strategy number 3. All my savings are on one account
When you have only one savings account, it seems that the money is accumulating on it quickly and there is enough for everything. If you save only for one thing, such as an apartment or a vacation, then everything is in order. But if you have several goals, one bank account complicates the calculations and you do not see concrete progress. It’s more difficult for you to understand what is enough money for and what you have to wait for.
As a result, it turns out that by spending savings, for example, on vacation, you do not leave anything on the new car.
- So how should it be? It’s better to have several accounts, each of which will be devoted to a specific goal, for example: “house”, “vacation”, “education of the child”. So it will be much easier to calculate your finances and see real progress.
Strategy number 4. I immediately save large amounts when I can
Some people do not save money on an ongoing basis, but immediately save large amounts when a lucky chance occurs. With this method of accumulation, feelings of abundance and guilt alternate. Last – when you have to take money from your savings. Disappointment from this can even discourage the desire to save money someday.
- So how should it be? It is best to set goals for accumulation and strive for them. Determine the specific amount of money you need to save each month. If it seems to you that it can be increased without compromising the quality of life, do it. But! Contributions must remain consistent and the same.
Strategy number 5. I save everything I can
Despite the need to have savings, do not get too hung up on this and deny yourself the pleasures. They help us to remain happy and maintain mental health.
- So how should it be? If you did not have a month in which you could contribute to the “emergency fund”, postpone all other payments and pleasures until you can do this.
When your six-month “emergency fund” is replenished, change the strategyof saving. Since small cash savings bring little money, it is worth considering more long-term investments at good interest rates.