One of the basic principles of good financial management is to save money. There are many foolproof tips and recipes on how to manage your funds and make them last longer. But, many ignore that it is not necessary to stop living well to save on expenses. You can indeed apply financial organization strategies that allow you to save the money you have left, without giving up a comfortable life. The first thing to do to start is to change your behavior. So, start recording all your expenses. You can do this on a board or using a notepad. Learn how to set up an expense sheet to control your money. This will allow you to later see the habits to improve to change your lifestyle while continuing to enjoy them. You may want to look at investing in cryptocurrency too. It is not just a fad, it is a growing trend with benefits. You can actually buy and sell cryptocurrency! Here are some additional tips.
1. 50-15-35 rule
The 50-15-35 rule is very simple. It ensures good financial management while optimizing savings. In general, it consists of dividing monthly income into three categories. For essential expenses such as rent, bills (energy, telephone, insurance, connection to the house, etc.), school fees or health costs, we reserve 50% of the salary. The 15% should also be reserved for financial priorities such as debt repayment in the event of credit. If you have no monthly payments to pay, this part will serve as an emergency reserve or will be put in the piggy bank. The remaining 35% can be used to maintain your lifestyle.
2. Don’t do a thing unless it really saves money.
You don’t have to go with friends or family to save money on vacation spending. What can really save a lot is to stop changing cars every year, for example. Or, stop signing up for the special magazine subscriptions or whatever you may choose to subscribe to! Again, it eats away at your budget.
3. Have goals and discipline
When you start saving, having a goal makes it easier to discipline. In other words, remember to ask yourself the right question: What are you saving money for? The answer will therefore be your objective. If you decide to save, don’t change your mind next month. The idea is to bet on the savings that will be automatically debited from your accounts. So you don’t risk spending the money you have set aside, it isn’t worth it. This will also make it easier to apply the 50-15-35 rule.
4. Balance your budget
Balance the amounts used for unnecessary shopping and errands with the money you set aside for other expense categories. It really pays to be flexible. Indeed, if you want to buy a fairly expensive shoe or change your cell phone, for example, compensate for these sums spent by reducing your trips to bars, restaurants and clubs a little. Balancing will allow you to enjoy the things that matter and being savvy helps you still save money too!
Thanks for sharing! Very helpful info!