Not everyone has 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. It is also necessary to save for going on vacation with the family. There are those who start saving money from an early age, so that in old age they would have great savings and would not need anything.
But most people still find it difficult to regularly part with part of their salary: current expenses, unforeseen expenses and many other reasons interfere. It also happens that the budgetary receipts are barely enough to meet the needs of the family, and that there is no question of saving. However, we and many financial experts believe that anyone with a relatively stable income can start saving. Sure, it’s hard, but it’s possible if you try to form some helpful habits. Below, we’ve put together 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. The man correctly assesses the level of income and expenses, each month can save a certain amount.
Now, learn more about what “necessary expenses” are. These are things or activities that cannot be avoided without reducing the quality of life. Necessary expenses include:
- Utility bills, taxes.
- Communication services.
- Foods and household chemicals.
- Hygiene products.
- Seasonal clothing and shoes.
- Transport costs.
- Tuition and kindergarten fees.
- Medications as needed.
- Visits to cinemas, cafes, expenses for favorite pastimes, such as online casino games in canada or a Netflix subscription, and other activities that help relax and recover (1-2 times per month).
The level of expenses depends on the composition of the family, the character of each individual and the region of residence. The figure is individual and may even vary from month to month. To plan your savings, you need to do a more precise calculation. Make a notebook in which you will write down all your expenses, even payment for parcels at the supermarket checkout. At the end of the month, analyze your expenses. Count how much money is spent on impulse purchases and try to be smarter about it next month. You can follow with an app on your smartphone. After 3-4 months, determine the average amount spent on “essentials”. The difference between this figure and your salary can be regularly provisioned in a separate account.
The disciplined person
This is a category of people who, despite their circumstances, can clearly follow an elaborate plan. Have you decided to set aside 15% of your income each month? Then he will save. Initially, 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 drop 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 needs to save each month, so that in old age he will not have to live on just one official pension.
The goals can be any, the essence remains the same. Every month you save 15% of your salary, and in a few years you have a good capital.
The modern person
People spend a lot of time with their phones. Smart gadgets help plan the day, remind us of important events, support in sports and diet. A large number of applications are becoming almost an integral part of the life of a modern person. Let your smartphone help you save. There are many services capable of automatically debiting your bank card or your account according to a defined algorithm. For example, each time your salary is credited, the program will transfer 10% or 20% to the “piggy bank”. It’s 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 like to save money, we can recommend the following. Try to buy products and other goods in stock, use the loyalty programs of the stores where you go 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 chain stores, you can use bonuses to pay up to 50% of purchases. At the end of the year, you will accumulate the first large sum in your account, which will be an additional incentive to save.
The Suddenly Rich Person
This is what we will call people who receive extra income on top of their salary. It could be a bonus, a part-time job, selling old things on a classifieds site, or some other compensation. Unforeseen income can be set aside entirely as a reserve – you haven’t factored it into your budget planning anyway.
The funny person
Want to start saving but don’t have a goal or motivation? Come up with a fun game for yourself. For example, every first day of the month at any time of the day, watch the clock: what number will be on the screen, what amount and save in the account. You can watch the thermometer every morning and add to your piggy bank. To make the game even more fun, add zeros to the numbers or invent a penalty system for yourself.
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