Not all people have the ability to save. But everyone would like to have a financial cushion or a large sum for a serious purchase, a down payment on a mortgage, etc. You also have to save to go on vacation with your family. There are those who begin to save money from a young age, so that at an old age they would have great savings and not need anything.
But most people still find it difficult to part with part of their salary on a regular basis: current expenses, unplanned expenditures and many other reasons interfere. It also happens that the budget receipts are barely enough to support the family, and savings are out of the question. However, we and many financial experts believe that absolutely anyone with a relatively stable income can start saving. Of course, it’s hard, but it’s possible if you try to form a few useful habits. Below we have collected recommendations for people with different personality types to help you take the first step toward saving.
The Practical Person
In this category we include people who know how to spend money rationally, buying only the most necessary. Man adequately assesses the level of income and expenses, can every month to save a certain amount.
Now more about what is “necessary spending”. These are things or activities that cannot be avoided without reducing the quality of life. Necessary expenditures include:
- Utility bills, taxes.
- Communication services.
- Food and household chemicals.
- Hygiene products.
- Seasonal clothing and shoes.
- Transportation costs.
- School and kindergarten fees.
- Medications as needed.
- Visits to cinemas, cafes, expenses for favorite hobbies, like casino online games in Canada or a Netflix subscription, and other activities that help to relax and recover (1-2 times a month).
The level of spending depends on the composition of the family, the character of each person, and the region of residence. The figure is individual and can even vary by month. To plan your savings, you need to do a more accurate calculation. Make a notebook in which you write down all your expenses, even paying for packages at the supermarket checkout. At the end of the month, analyze your spending. Count how much money is spent on spontaneous purchases and try to be smarter about it next month. You can keep track with an app on your smartphone. After 3-4 months, determine the average amount spent on “essentials. The difference between that figure and your salary can be regularly set aside in a separate account.
The Disciplined Person
This is a category of people who, despite their circumstances, can clearly follow a developed plan. Have you decided to set aside 15% of your income each month? Then he will save. At first, it is recommended to save for a “safety cushion” – an amount sufficient for 3-6 months in case of loss of work or a sharp decline in income. When the reserve is ready, a disciplined person begins to save for major purchases. He understands that saving for a car or an apartment is more profitable than taking out a loan.
Another characteristic of disciplined people is making plans for the future. A person knows how much money he has to save each month, so that in his old age he won’t have to live on one official pension.
Goals can be any, the essence remains the same. Each month you save 15% of your salary, and in a few years you have a good capital.
The Modern Person
People spend a large amount of time with their phones. Smart gadgets help plan the day, remind us about important events, support in sports and diet. A huge number of apps are becoming almost an integral part of a modern person’s life. Let your smartphone help you save. There are many services that can automatically charge your bank card or account according to a set algorithm. For example, each time your salary is credited, the program will transfer 10% or 20% to the “piggy bank”. This is a great way to start saving if you don’t have the determination or willpower to manually withdraw the necessary amount from the budget.
The Thrifty Person
For people who know how to save money and enjoy saving, we can recommend the following. Try to buy products and other goods on the stock, use the loyalty programs of the stores you go to most often. The cashier’s check will indicate the amount of the discount. Consider the amount you have saved, and you can safely put it in the piggy bank. With a sensible approach, the benefit is substantial. In some retail chains, you can use bonuses to pay for up to 50% of purchases. At the end of the year, you’ll accumulate the first large sum in your account, which will be an additional incentive to save.
The Suddenly Rich Person
That’s what we’ll call people who get extra income in addition to their salary. It can be a bonus, a part-time job, the sale of old things on a classifieds site, or another payment. Unscheduled income can be completely set aside as a reserve – you didn’t factor it into your budget planning anyway.
The Fun Person
Do you want to start saving, but don’t have a goal or enough motivation? Come up with a fun game for yourself. For example, every first day of the month at any time of the day look at the clock: what number will be on the screen, that amount and save in the account. You can look at the thermometer every morning and add to your piggy bank. To make the game even more fun, add zeros to the numbers or come up with a penalty system for yourself.
“Unable to type with boxing gloves on. Freelance organizer. Avid analyst. Friendly troublemaker. Bacon junkie.”