Let’s face it, you want to know how to save more but it seems like an impossible task. Although you propose it most of the months, extra expenses always appear that end up taking everything out of your bank account. Despite knowing all the benefits that saving brings, we simply spend what we earn and in some cases a little more. In fact, saving is easy, the problem is that not saving is even easier.
Also read: How to make a simple budget using these 3 categories.
The same happens when you decide to get up early or exercise, these are habits that you can include in your routine if you want, however, it is much easier not to. Unfortunately this happens with all things that are worthwhile, require more effort and it is for this reason that most people leave it aside.
According to studies carried out by the Development Bank of Latin America, only 2 out of 5 Latin Americans save and the vast majority keep their savings at home. What is the use of having money saved? NO PROBLEM! You have to invest it. This means that close to half of the population is in a vulnerable situation. What happens if they lose their job or have a medical emergency?
Also read: Losing your job can be the best of news.
One of the great reasons why people do not save is due to a lack of financial education. We never receive that kind of information, neither at home, nor at school, nor at the university. The only way to educate ourselves about money management is to investigate on our own and it is for this reason that you are reading this article.
How to save more? In order to create a savings habit, it is very important that you know yourself. Are you impulsive when buying? Are you disorganized with money? Do you never know how much you have in your account? Do you not know what your expenses are? Answering these questions will help you create a savings system that you can’t cheat on.
Also read: How to avoid having debts.
If you belong to this select group of people who are looking to learn how to save more and become expert money managers and multipliers, follow the following savings strategies with great discipline.
How to save more.
1. Save first before you spend.
I could ensure that you are one of those people who think about saving what is left after paying debts and other expenses that appear during the month. BIG MISTAKE! You are doing everything backwards.
The first thing you should do when you receive your salary, commissions, bonuses, dividends, interest or any type of income; is to save a percentage. You know your capabilities and you know what percentage you can save each month. Tony Robbins in his book “Money Master The Game” recommends starting with a 10% savings and trying to gradually increase it according to your possibilities. If you save what’s left over at the end, you risk saving too little or spending everything you have.
Also read: Tony Robbins’ secret to success.
2. Make a budget and hold onto it as sacred.
Do you live like a king the first days of the month and the rest you have to live with austerity?
This is one of the factors in which most people fail. Popular sayings affirm that money is for spending, that there is no point in having money if you cannot enjoy it, and they are not entirely a lie, however, they have entered our minds and now serve to justify our inability to save.
It is absolutely important that you make a budget, you cannot continue spending your money without control, without knowing how much you should spend or what your saving capacity is. Separate your financial obligations, first those unavoidable expenses such as your food, transportation, rent or mortgage if you have it, and all those liabilities that represent your financial security. The second step is to record your bank charges, debts, loans and credit cards.
Finally review your bank statements and carefully evaluate how much money you are spending outside of the costs that represent your financial security. How much are you spending on trips, outings to restaurants, parties and in general everything related to entertainment.
Also read: How to make a budget for your personal life
The simplest thing is to organize all this information in an Excel table. This will allow you to have a global vision of your finances. Remember that to get where you want in the future, you need to know where you are in the present.
Always remember:
- Stop buying things you don’t need, with money you should save and invest, just for show.
- Most of what you buy only makes the richest rich and makes you poorer.
- Whenever you go to buy something ask yourself, do I really need this? If the answer is no, then don’t buy it. Easy.
3. Permanently track where your money is leaking and keep a detailed record of your expenses.
This is one of the most important tactics in this game, especially for those people who are disorganized with their money. Keeping track of your expenses will allow you to detect money leaks. You will be surprised to find the amount of money you spend in small portions and repeatedly throughout the month, expenses that in most cases you can eliminate. Do you think you really need to go to Starbucks every day for a coffee? Maybe not. Aside from using Excel, you have the ability to use applications like Spendee to religiously record all, absolutely all of your expenses and income.
4. Invest carefully in different portfolios.
Having your money under the mattress doesn’t make any sense. Use the power of compound interest, about which you will find information in the following link “Learn about the power of compound interest, the basic concept that you must know if you want to multiply your money” so that you have an introduction to the investment part. It is necessary that you learn about the stock market, real estate and in general all kinds of investments that allow you to multiply your money. Remember that the first step is to start saving.
Also read: What is the stock market and how to invest in shares.
And remember that if you are really interested in creating your own business, you can purchase our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
