How to learn to save and save money? TOP tips

If you want to achieve stability and prosperity, then you can’t do without financial literacy. You need to know its basics. A very important factor is the ability to save money. This is relevant for any income. In this case, we are not just talking about saving, but about the ability to manage the budget in such a way that it is possible to set aside a certain “financial cushion”. Please note that this is relevant regardless of the level of your income.

Saving money skills are very useful because they help you achieve various financial goals, for example, it can be buying a car or an apartment, paying for education, traveling abroad, etc. That is why in this article we propose to talk about the basics of financial management. The main positions will be voiced and effective recommendations will be provided that will definitely come in handy for you.

Why is it important to learn how to save and save money?

This is a really useful skill and absolutely everyone needs it. Even if you earn a lot, you still need to be responsible with your money and try to save something. What are the benefits of this?

First, it will help you protect yourself from unforeseen situations. Unfortunately, none of us know what the future holds. It may not be as joyful as we would like. Life is very unpredictable: illnesses, accidents, or job loss can be a serious challenge, but having a reserve fund will reduce their impact and help you deal with problems.

Secondly, this way you can achieve big financial goals much faster. Everyone has their own thing. Be that as it may, everyone has their own dream and in most cases, money is needed to realize it. Saving money allows you to gradually save up for big purchases or investments.

Thirdly, you will feel more confident. No matter what anyone says, it is impossible to live without money in our time. When finances are under control, you feel less anxious and more freedom in making decisions.

Fourth, it will be beneficial for your personality because it develops a characteristic such as discipline. This will have an impact on your entire life and can improve its quality. Financial management skills transfer to other areas of life, improving overall organization.

Basic principles of economy and savings

• Plan your budget clearly. There's nothing wrong with writing down your expenses and what you plan to buy. This will make it easier to control exactly where your money is going.
• We recommend developing certain rules for distributing funds and sticking to them. For example, it could be a 60/20/20 ratio: 60% for necessary expenses, 20% for wants, and 20% for savings.
• To make saving money easier, you need to define a specific goal for which you are doing it. This can even be several goals, for example, short-term and long-term.
• We do not recommend getting into debt. Of course, situations are different, but it is better not to borrow, either from relatives or acquaintances, or from financial institutions (banks and MFIs).
• Try not to get emotional when shopping. If you feel like making a spontaneous purchase, give yourself a few days to avoid impulsive spending. This will give you the opportunity to carefully weigh and think things through.

TOP tips for saving and saving money

If we talk about specific tips that will help both in the short and long term in saving money, they are approximately as follows:

1. Set up automatic transfer of part of your income to a separate account – this can be done through online banking. Everyone has bank cards these days.
2. Download some cost accounting programsModern technology can help you track expenses and save money.
3. Set financial limits for yourself for a certain period of time, for example, a month.
4. Don't overpay where it doesn't make sense. For example, the same products can cost differently depending on the manufacturer. Don't spend more just because of the name on the packaging. Look for quality but inexpensive offers.
5. Save on utilities using energy-efficient devices, such as LED bulbs.
6. Plan your purchases in advance.. Train yourself to make a list before going to the store.
7. Refuse unnecessary subscriptions.

How to change your habits to save money?

If you have never tried to save for something and understand that you are bad at saving, then you should not try to change yourself on the first day. Start small. The fact that you understand the existence of a problem is already the first step. As the foreign proverb says, “Rome was not built in a day” can be translated as, “Рим студувась не один день”.

It would be helpful to read books, blogs, and watch YouTube videos about money management. This will help you develop financial literacy.

If you realize that you spend a lot of money because of your surroundings, then it is quite likely that it is time to change it. For example, if you are used to relaxing in expensive establishments with friends every Friday, but it is not always within your budget, then try to give up this habit and you will save a lot of money.

Try to make saving a habitMake it a part of your daily life and it will become a natural process, like a reflex.

How to stay motivated to save?

Again, it's helpful to set goals. When you see them getting closer and not as unattainable as before, it will motivate you to keep saving.

Try to focus on long-term benefitsWhen you feel like quitting, remind yourself why you're doing it. This will be especially helpful in moments of weakness.

Try visualization. The human brain is designed in such a way that we perceive information better with our eyes. This can be used as a life hack that will help to trick your mind a little and make your willpower more stable. For example, you can print out a photo of your goal and hang it in a prominent place so that you can constantly see it. The photo will remind you that you are doing this for a reason and that certain inconveniences now will be rewarded later with what you want so much.

Frequently asked questions

1. How to save if your income is low? Start with minimal amounts. For example, it could be 5% of income. Over time, this could become a significant amount. Also, cut down on unnecessary expenses.
2. How to save money if there is no possibility to set up a reserve fund? Use the gradual savings method: save at least a few hryvnias every day. Even small contributions are important.
3. How to determine how much you can save per month? Analyze your expenses, allocate the necessary (food, housing) and leave some for a reserve fund. Usually this is 10–20% of your income.
4. What to do if you don't have enough money even for necessary expenses? Consider the possibility of additional income, for example, in your free time and on weekends you can try to do online. We live in the 21st century. There are many options for part-time work on the Internet today. For example, you can work as a copywriter - writing texts. Also analyze the budget and reduce all secondary expenses.

Let's summarize

The habit of saving and the ability to save money is very useful. It allows you to accustom yourself to discipline and have a certain financial reserve in case of unexpected problems. Everyone can learn this. The main thing is patience, desire and determination.