I always find myself counting the things I bought this week or during the past month; perhaps I can determine where I went with my salary this time, and I may Learn a lesson that might benefit me next month; to save what can be saved and thus save money or a little bit of it, and unfortunately, the subsequent months come without No change.
Therefore, and as a result of some of my obligations in the coming period, I have to start by providing a certain amount of money that helps me to fulfill these obligations. That is why I decided to move forward in the search for the best and most effective way to save money.
Our circumstances require saving a lot of money, so if someone wants to save to buy a house, a car, travel for a vacation, a study trip, it is necessary to provide for emergency conditions, not upon appointment, which may happen with any of us suddenly
How to save money in 11 steps?
Here I collected 11 necessary steps that we literally have to follow if we really want to save:
1 – Set your goal
Not only in saving but any work or task that we want to accomplish must define the goal that we want to reach from behind that work, otherwise, success cannot be achieved.
Determining the goal that we want from savings is very necessary to be an incentive for us to motivate us to do what is required of us, otherwise, we will not save and we will start procrastinating. Therefore, the saving process begins by defining our goal of saving money that might be to buy a house, renew furniture, or from the principle of “save your white penny for your black day”
2 – Select the amount you want to save monthly
This is the golden rule in saving, if we really want to save, we must determine the amount that we want to save on a monthly basis, and from the beginning, then we can spend the rest of the salary according to our need.
3- Order what you want to buy
The human soul is by nature eager to possess and desires a lot of things and constantly; therefore, it is important during our desire to save that we do not quickly push our desires and whims and waste our money on things that we do not really need. When we want to buy something, be patient a little and think whether we really need this and need it, or whether it is just a luxury that we can do without
4 – Avoid unnecessary luxuries
There are many unnecessary things in our life and these include products we buy, behaviors that we follow and much more.
Our need to save money requires us to be aware of these behaviors so that we do not waste a lot of money on essentially unnecessary and essential things.
For example, while we can eat at home, there is no need for a restaurant and fast food that consumes money and health. Likewise, in our shopping, for example, there is no need for a lot of unnecessary clothing to cope with the trends of fashion, while we can save money to invest in more useful things.
A lot of things we do constantly and without awareness of the amount of money we spend on them while we can save it for other purposes.
5- Select a list of what you want
At the beginning of each month, it will be useful to make a list of the necessary things that you intend to buy this month, and then cross out all unnecessary things at the present time that you can defer to the next month. Repeat this every month and you will be amazed by how much money you will earn from following this habit.
6 – Avoid debt and loans as much as possible
Certainly, the loan or conviction does not happen except when the person is obliged, no one will resort to condemnation or borrowing from the bank except when it is in distress and this confirms the necessity of our talk here about saving money and its importance.
Accordingly, following the correct rules for saving in our normal conditions relieves us a lot during periods of need and distress. The advice here is to avoid debts and loans as much as we can because if it happened and we borrowed from either someone or formally from a bank, this matter will still be an obstacle in our lives, and it will control With our income and how we spent it for a long time, except that we wouldn’t be able to provide any amount of our income for the duration of the debt or loan.
7 – Record your expenses
Make a list of all your expenses, to review yourself at the end of each month and see where you spent your income this month. This will enable you to assess your behavior in spending and saving and thus correct mistakes in the next month.
8 – Pay yourself first.
The easiest way to save money instead of spending it is to make sure you “don’t have a chance to spend money in the first place.” Allocating a portion of the salary to be deposited into a savings account or a retirement account saves you from the tension and confusion that arises when trying to determine the amount of money that should be saved and how much can be spent per month, and you will be able to save part of the money automatically and spend the rest of the way however you want. The persistence of depositing even a small portion of your salary into a savings account gradually increases your savings over time (especially when taking into account the accrued interest). So, immediately start saving money into a bank account to get the most out of it.
Talk to your company’s payroll officer (or the company’s payroll department) about the possibility of depositing part of your salary in a separate account automatically. You will usually be able to fulfill the requirement without problems if you can provide savings account data separate from your regular current account so that part of the salary is deposited into it separately.
If, for any reason, you are not able to deposit part of the salary in a separate savings account automatically (such as in the case of self-employment or receive payment in cash), then you must specify a cash amount to be deposited into your savings account manually periodically every month and then “adhere to the goal that you have set for yourself
9 – Set reasonable and acceptable savings targets.
Saving is much easier if you have a goal that you save for, so set yourself achievable goals to get yourself to make the tough financial decisions necessary to save money seriously. The process of achieving some serious goals such as buying a house or retiring can take several years or decades, and in these cases, it is important to check your progress in saving regularly by stopping each period and taking a comprehensive look at the situation as a whole to assess the progress made and the amount of money that still needs to save it.
It may take a long time to achieve some big goals such as retirement, and it is likely that financial markets will differ from their current situation when the time to achieve these goals. For this reason, you may need to spend some time anticipating the future financial market situation before setting your goal. For example, if you are in the prime years of receiving income, most financial analysts say that you will need 60-85% of your current annual income to maintain the same lifestyle you currently live after retirement.
10 – Start saving money as quickly as possible.
Interest accrues over the sums saved in savings accounts over time, and the percentage of interest accrued over the money increases with the amount in the account. For this reason, saving money as quickly as possible is very beneficial to you. You should also save small amounts in a savings account if you are not able to save larger amounts at an early age. The benefits of their total value can accumulate over the original amount when saving small amounts of money over time.
Say, for example, that working in a low-income job when you are in your twenties leads to saving $ 20,000 and that you have saved this amount in a savings account with a return of 4% annually, this will lead to the accumulation of interest in $ 4166 within 5 years. However, saving this money one year earlier will earn an additional $ 1,000 at the same point in time without any extra effort. This amount is small, but it is definitely useful.
11 – Find less expensive accommodation.
Housing expenses make up the largest part of most people’s budgets, so saving money on housing will give you a large amount of money that can be used for other important activities such as saving for retirement. Although changing your housing situation is not always easy, you should rethink your housing situation very seriously if you have problems saving money in your budget.
If your home is rented, you can try to negotiate with the landlord to reduce the rent. Since most landlords want to avoid the risk associated with finding new tenants, you may be able to get a better deal if your relationship with the homeowner is good. You can also negotiate with the owner of the dwelling to swap some work (such as looking after the garden or doing household chores) for a lower rental price.
If you are paying a premium for a home, talk to the lender to refinance and reschedule your loan, and you may be able to get a better deal if your financial situation is good. When rescheduling the loan, try to keep your payment schedule as short as possible.
You can also consider moving to a fundamentally cheaper residence. Also, search for local studies that explain the cheapest places to buy or rent housing within your country
Tips on how to save money fast
Keep all or most of any money you weren’t expecting in your savings account, but keep saving the amount you planned to save as well. This will reach your financial goals faster.
Ask yourself “Do I really need this thing?” Even if you have a strong desire to buy this thing. You will find that the answer is often no.
Most people can save money regardless of how much they earn, and starting to save money leads to the habit of saving money. Even saving a small amount, like saving $ 5 a month, will teach you that you do not need the amount that you think you need in your monthly expenses.
Always get used to overestimating your expenses and underestimating your income.
Take care of your belongings. This will reduce the need to replace this property. Also, do not replace your items unless this is absolutely necessary. The mere failure of the motor in the electric brush does not mean that it cannot be used as a toothbrush. Keep using the brush and buy a new one or check the warranty when it’s time to do so.
Buy things with money and always keep the rest. Use a piggy bank or a box to hold coins. You may think that coins or the rest are not valuable, but collecting coins may help you save over time. Some banks currently offer free machines for counting coins. When converting coins into paper money, ask to receive payment by check so that you don’t feel tempted to spend the money.
When going to buy something, think about what you have been saving money for and the percentage you will take to buy this thing. This will usually change your view of not buying this thing.
Saving money according to a specific budget over the days will be easier if your income is fixed periodically, and it will be more difficult to forecast expenses if your income is changing because you will not know the date of the next payment that you will receive. Sort your budget rankings by importance and spend on the most important purposes first. Always secure yourself as it will take some time before receiving money again.
Use affirmations. For example, repeat this assertion so that it stuck in your mind: Debt is not a viable option.
If you do not have the nerve to destroy all of your credit cards, at least freeze them. What we mean here is literally freezing it, so put the credit cards in a bowl, fill it with water and then put it in the freezer. The benefit of this is that when you feel a desire to use credit cards you will have to wait for the snow to melt, and during this time you will be able to return to your senses and know that you really do not need to buy the thing you wanted to buy with a credit card.
Do you have a hobby? Save as much money as you spend on your hobby. One of the important habits of saving on a hobby is setting a strict rule on saving an amount similar to the amount you spend on your hobby. For example, if you spend $ 100 to buy accessories for your hobby, then you must add $ 100 to your savings.
Enjoy the simple things in life. People continue to enjoy their lives during periods of economic depression, and the different thing is that they do not enjoy exorbitant expenses. You will find that people used to enjoy their time in times of economic depression in the past through simple activities such as competitions, playing card games, listening to the radio, reading, and more.
Meet with your friends to play some simple games, read or discuss a topic, dance and other inexpensive social activities. It used to be a fertile imagination to enjoy, but people had a lot of fun and you can do that too.
Are you serious about saving? Try to save twice as much as you spend on your hobbies! These savings plans do two things: save money regularly and quickly and let you know how much money you spend on your hobbies because you have to save twice as much as you spend on it.
Try to find at least one penny on the floor every day. Put the money you find in a bowl and find out how much money you collect will happen and how fast!
Try to share with others the things you own, such as housing, appliances, etc. Your friends will return the favor to you, and you will soon find that your friends do the same for you to benefit everyone.
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This was what I thought was the most important and effective rule that we can follow and apply in our quest to save money and salary and avoid wasting our money on minor and unnecessary things. So I hope that you and I will help you provide what we can and help us achieve what we want to achieve beyond savings.