There is a phrase that you have surely heard and that you have even used: “I don’t have money to start saving.” The reality is that you do have it, you just need to know what changes you need to make to save a little of your income.
You may believe that it is not easy to start with a savings plan and feel lost in the world of personal finance. For this reason we want to give you some tips that will help you and, in addition to saving, will allow you to start thinking about an investment plan in the short, medium or long term.
1. Forget about excuses
Stop using pretexts and learn to identify them. Do not say: “I do not earn enough”, “I have too many expenses”, “I have a lot of debts”, “with children, it is impossible to save”, “since I live alone, it is not enough for me at all”, because although there is a little Of reason in these, they are not justifications for not saving or taking care of the money you receive every fortnight. Therefore, it is better that you recognize that you do not know how to save, but that you want to learn, so your mentality will change and you can begin to improve your relationship with money.
2. Make budgets your best friends
When you start earning money, it is common to believe that it will last forever, but it is not, especially if you are already independent and have fixed monthly expenses. For this reason it is important that you know the importance of a budget, as it will allow you to better manage yourself and you will not forget any payment. The best thing is that you know what to consider, such as: fixed or basic expenses (payment of rent, food, services and transportation), savings and investment (for short, medium and long term) and personal expenses (tastes that you want to give yourself). The important thing is the percentages that you designate to each point. Here’s an example:
- Budget 65/15/20: Depending on the income you have per month, designate 65 percent for fixed expenses, 15 percent for your savings or investments, and 20 percent for your personal expenses. In this way, you will know that you are not only saving, but that you cover all your needs without going into debt.
3. Say no to minimum payments
In Mexico it is very common for debts to be paid by giving only the minimum payment. However, people do not realize that each time they do that, they only pay the interest generated by the purchase and, in reality, only a small part of that credit goes to the payment of the purchased product. The best thing is that you pay in cash or pay double or triple what the monthly receipt asks for. It is difficult to raise money, especially if you are not used to doing it that way, but once you have a budget, it is easier to achieve.
4. Record your daily expenses
You may think that this is a boring and complicated task, but when you do it, you know exactly where your money ended up. For this reason, it is essential that you write down each expense, no matter how small it may be. It is recommended that you have a small notebook and write every day how much was the amount you spent and on what. Thus, at the end of the month you will know that if your spending was higher than your income, you are doing something wrong and you should avoid certain unnecessary purchases.
5. Learn how to use your credit card
Sure, having your first credit card is exciting, because you feel like a millionaire for the first time in your life, but as Uncle Ben said, “With great power comes great responsibility.” So learn to use your new plastic properly. Use it preferably only for purchases for months without interest (MSI) and learn to differentiate if it is really a purchase from MSI and, above all, with products that are completely worth it. This can be valued when the item has a longer useful life than the time it takes to pay the debt. Also avoid the “snowball” effect, since you start shopping, but when you least imagine it, your debt has risen to almost triple or quadruple the first, so you will find yourself in a bind.
6. Control your impulses
Most of the purchases you make you don’t really need. Many times, you usually buy something because the item looks beautiful or has an offer and you can excuse yourself with the typical “I deserve it”, “I’ll see how I do it”, “Oh! God squeezes but does not strangle”. The worst thing is that this purchase gives you temporary satisfaction, but later you feel guilty, because you realize the debt you have acquired. So a good advice is that if you happen to see something that you like, first analyze if it is really necessary in your life. If it will have a useful function, buy it, if not, you will see that you have avoided a debt.
7. Don’t fall for false offers
Sometimes the offers that are marked in supermarkets or shopping centers are not really sales. Therefore, not only be guided by the large letters, also read the entire product label and compare if you are really saving or paying the same amount. Take all the time you need to know whether or not you are saving a little money.
8. Identify the “ant expenses”
We all have “ant expenses”, that is, those small purchases that cost little, we believe that they do not affect our economic stability. However, it is the opposite, because if you usually buy a 10 peso soft drink every day, a week you will spend 70 pesos, which a year will be 3,640 pesos that you could have used to buy those tennis shoes that you have wanted so much for years, but they seemed too expensive. It’s okay to treat yourself once in a while as long as it’s in your budget.
9. Learn to compare prices
Of course, it is easier to buy everything in the same store, but the reality is that you must learn where to buy, as this will save you money that you can later use for something else. Identify if your company has agreements with micro-companies that provide any service of interest to you, generally they are discounts or 2 × 1 offers. Find out if your credit card has promotions with stores that you like and check Tickets and coupons that you can make valid for products that attract your attention.
10. Find a way to have extra income
Many girls are excellent at selling things, this is a good idea if you like sales or if your monthly income is not enough to pay what you owe. Find out if you are good at creating jewelry, selling by catalog, attending a second-hand bazaar or start a micro-business with the help of your best friend or your boyfriend. There are hundreds of options you can turn to.
11. Don’t be afraid of banking apps
It is true that having banking applications on your cell phone makes you open your eyes and feel like a true adult, but the reality is that if you have a bank card it is because you already are. So do not be afraid of them, they really are very friendly and easy to use, since you only need to enter your personal data. The best of all is that they are super safe, because the bank is the one who creates said Applications. You will soon discover its benefits and take advantage of them.
12. Forget about card payments
One of the biggest problems you can face when paying with a card is that you do not realize how much you are spending, because you really do not notice everything that comes out of your pocket. For this reason, it is recommended that you try to have a card-free week if you have a problem with overdoing the use of these payment methods. Withdraw the cash and see how much you really spend. In this way, it will be easier for you to see that your portfolio does indeed have a limit and that you must respect it to live without worries.
13. Bridge a goal
This point is the most important of all, because even if you want to save, if you do not have an end, you will spend all the money on anything and you will feel that you have done all that for nothing. Ask yourself what you want the most for this year. It does not matter if it is a short, medium or long-term goal, since you will start planning the amount you want to save monthly depending on it. In addition, it is important that you always visualize yourself with financial stability. In this way, you will see that those thoughts of “I am poor” or “I have no money” begin to disappear.