Saving money is right, but not everyone can do it. A popular excuse is a low salary.
But here, rather, it is not the amount of income that is important, but financial discipline and a reasonable approach to expenses.
If you look at them in more detail, there will probably be some that you can do without.
Budget and health
Especially difficult is the medical care topic. If your insurance doesn’t cover all the needed procedures, you have to work harder on looking for cheaper options. Treating addictions if difficult because rehabs are usually pricy and don’t get covered by insurance.
Luckily, there are still options for free rehab centers in the US. In this case, the best option would be to google free rehab near me and find the option which fits you the best. Treatment provided there is not worse than in luxury centers because they are funded either by a state or local/religious communities.
Today we will provide several recommendations that will help you rethink your approach to savings and start doing it, even if you have a small salary.
Why should you save?
Folk wisdom says that it is not the poor who saves but the intelligent one. It seems to many that this is a forced step and a strict restriction that prevents them from living happily and in prosperity. In fact, saving money is a smart consumption of goods and services.
It helps to take a balanced approach to expenses and give up unnecessary things in favor of important ones. The main thing is to use money rationally, and not to become a miser.
Advantages of saving money:
- strengthening financial independence;
- quick achievement of set goals;
- creation of a safety cushion in case of unforeseen circumstances;
- opportunity to invest money to create passive income. It is convenient and saves money.
Find out exactly how much you earn and spend
Having an accurate idea of how much money is coming in and how much is being spent is the first step to saving money.
Otherwise, it will be difficult to implement a comprehensive saving and spending plan, Arevalo says.
Use budgeting apps, a notebook, or a spreadsheet to keep track of everything you earn and everything you spend.
You might be surprised to see where your money goes.
Even if the realization of your financial situation makes you nervous, use this advice to overcome the discomfort faster.
Analyze your expenses, find the “weak link”
There is an opinion: if a person earns little, then he will never be able to postpone. Simply because she doesn’t have enough money for anything. If a person earns a lot, in this case, he can not only spend money without counting, but also save it “for a rainy day”.
This is fundamentally wrong. You can earn a lot, but spend money so thoughtlessly that it will flow out like sand between your fingers. Rich people, especially those who got wealth easily, don’t always think about a “dark day”.
You can earn less, but treat money as a tool for achieving goals, distribute it correctly, do not spend it on things that are not useful. In this case, it will be possible to save and postpone.
First of all, you should competently analyze your expenses. We have already told how to do this in the article “How to manage a family budget”. We are sure that you can easily eliminate one or two items of expenses, or reduce them to a minimum, while not incriminating yourself excessively.
The “three boxes” method
They say that this method was successfully practiced by our parents. Its essence is that the earned money was divided into three boxes: for food, for the family (utility expenses, clothes, etc.), for oneself.
Now, in the age of computer technology and cashless payments, there is no need to mess with boxes. But one rule must be learned clearly: if you save money “for a rainy day”, it must be put in such a way that it cannot be taken and spent under the influence of emotions.
For example, you can open a bank deposit with monthly replenishment. The expiration date of this deposit shall be timed to the date of the vacation. And then, using the accumulated amount, use it for a trip to the warm sea or to Europe.
If you save money “just in case”, you can keep it in a card account with an increased interest on the balance and the ability to access it at any time.
But in this case, it is necessary to show responsibility and awareness. Remember that this money is not for daily expenses.
It is better to hide the card with this amount somewhere away, having previously set up a regular transfer of a specific amount (or a percentage of the received amount) from the salary card to the savings card.
Saving is the same as earning – set right priorities
Have you ever thought that you could get the same product or service or less? At the same time, it will be of the same quality, but 5, 10, or even all 20 percent cheaper?
Yes, it’s real, even when it comes to healthcare. If you need to get free drug addiction help, there are options for it: either looking for state-funded free rehab centers or small communities funded free drugs rehabilitation centers. Sometimes, you can just google or contact the organizations directly.
Remember: what you didn’t spend on unnecessary things or saved when buying the right one is your additional income. This can be put aside and used to make your dream come true.
Clearly define the goal of saving money
In order to quickly accumulate the required amount and not go astray, determine the goal, its cost and the time for its implementation.
For example, you want to buy a car, but you don’t know how much money you can save. Choose a car and find out how much it costs.
Think for what period you could collect the required amount. It is easier to save 10-20% of your monthly salary for several years than to frantically think about where to find money for a car right away. The main thing is that the goal