How to save?


Time passes, prices rise and the salary stands still. How to live well anyway? Most people who have financial freedom first of all started with the reduction of expenses, respectively they started to save.

Here are 7 ways you can save:

  • 1 Record expenses

    The first step to start saving is to understand how much you spend. Record all expenses, this involves any expense from a more expensive gift to each coffee and donut.

    Once you have this information, sorted by categories, such as products, car, entertainment, etc. As an idea, you can pay more often with the card so that you don't forget exactly how much you paid.

    Note: You can use phone apps that record these expenses, write Money Manager, and you'll find a range of apps.

  • 2 Save something every month

    How can you become a millionaire? It's easy, it's just that it takes some time, for example, if you collect 70 lei every day, in 40 years you will have 1,008,000 lei, put the amount in the bank interest and you will receive even more.

    Note: Once you know how much you spend per month, and you know the income, you can set how much to set aside per month, for example 15% of the monthly income. Be sure that without these 15% you will not always be on the edge, to feel comfortable.

  • 3 Find ways to reduce your expenses

    If your expenses are high and you can't save as much as you would like, it's time to cut back on financial generosity. Once you have sorted into categories where the money goes you can see what is less essential and where that generosity can be reduced.

    Here are some ideas on how to do this:

    • When it comes to some events, look for those that are free or get a ticket in advance when they have a better price.
    • If you subscribe to a service that you do not use, unsubscribe, and if you use it less often, you can get the cheapest package.
    • Cook food at home, it saves a lot of money, but it also teaches you good cooking skills.
    • Be careful when the discounts take place, no matter what, clothes, vacation, food.
    • Whenever a sudden idea comes to buy something more expensive, sleep with the idea overnight and see if you will need it în the morning again.
  • 4 Set goals for saving

    One of the best ways to raise money is to set a goal for what you raise. Start by thinking about what you would like to use this money for, for a house, a car, a wedding or a vacation, once you have decided what you are going to raise and the specific amount you will need and how long it will take to accumulate the money.

    For a more detailed purpose, we recommend dividing the goals into long-term and short-term ones:

    Short-term (1-3 years)

    • Funds for unpredictable situations (reserve of living expenses for 3-9 months)
    • Holidays
    • Payment for car leasing
    • Wedding expenses and more

    Long-term (4+ years)

    • Considerable mortgage payment
    • Children's education
    • Investing in business
    • Pension
  • 5 Set priorities

    Once you have taken control of your income and expenses, in addition you have formed some goals, if they are motivating enough they will have a decisive impact on your discipline of making those savings. It is important that long-term goals are not always postponed for other short-term purposes.

    Note: For example, if you know that in the next 3 years you plan to change the car, it is time now to start gathering and already balancing this decision with the intensity of the holidays and the generosity of gifts.

  • 6 Save with interest

    It is a popular saying "Keep the eggs in several baskets" and it is desirable that these baskets be with interest.

    If it is an average amount it is enough to keep money in a bank, but in case of long-term purpose it is good to consider and deposit in several banks.

    Let the money make money, now there are many types of deposits in which the amount can be filled indefinitely, respectively monthly you can add money to the deposit, and on these additions interest is still calculated, so that at the end of the year you have 3-5% more much more than accumulated, and when it comes to 3-4 years these percentages play a crucial role.

    Note: Most banks have the option to make transfers automatically, and once you aim to collect 10-15% of your salary each month, you can schedule the bank to make a transfer from the card to that deposit at the beginning of each month.

  • 7 Watch the savings grow

    Analyze the accumulated budget and check the monthly progress, this will not only help you maintain the established plan, but will also help you understand where you still have to work and how to adjust the budget if you had unpredictable expenses. Understanding how to raise money and observing the actual result can motivate you even faster to reach your goal.

    Note: Remember the first way to make money is to save, but let's not forget about the second is to work hard and make money.

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