Learn about the best ways and principles to save money and savings
Saving money should not be from the remaining amounts at the end of the month. Rather, it is necessary from the beginning to allocate a part for savings, which is supposed to represent 10%.
In many cases, saving money can become a difficult goal, and failure in it causes a lot of frustration, due to ignorance of the best effective means and principles in saving money and saving, especially for those who manage their financial affairs day by day.
Many face difficulty in collecting money to go on vacation or buy a gift or a new car, but experts assure that this is not difficult, provided that they avoid common mistakes that many make and lead to their failure to achieve their financial goals.
It should be recalled that saving money should not be from the remaining amounts at the end of the month. Rather, it is necessary from the beginning to allocate a part for savings, which is supposed to represent 10%.
To succeed in achieving this goal, you must know the best means and determine the appropriate spending method for your financial situation (Getty Images)
Set savings goals
Before knowing how to save, you must determine the amount you want to collect and the purpose for it. This purpose may be emergencies, travel, or doing business. Knowing this purpose may be the best motivator for us to be disciplined and keep saving money.
In order to succeed in achieving this goal, you must know the best means and determine the appropriate spending method for your financial situation. First, you should beware of financing sources that provide you with liquidity in exchange for repayment at a later time, as is the case with loans and advances. These things are not recommended, especially when spending on consumer products such as trips and clothes.
Opening two bank accounts
One of the useful tips in this context is to open a bank account in which you put your monthly salary, and a savings account in which you directly deposit 10% of your salary, with your strict commitment not to prejudice this account until its purpose is achieved. In this way, you will see that the amount saved is constantly increasing, and you will feel comfortable and satisfied that you have enough to face surprises such as losing a job.
Avoid the bidding trap
This advice is known to everyone, but it is difficult to apply, so you should stay away from chaotic spending that leads to depleting money in unnecessary things.
In order to achieve savings goals, you must acquire the habit of comparing the prices of goods and services that you consume daily, such as food, fuel, clothing, telephone and insurance.
Also, beware of impulsive buying at sales times, as this can be a trap. Therefore, even in these times, you should only buy the things you need, and not pay attention to other commodities, regardless of the size of the discounts.
Organize a budget in which all your money
In order to understand how to save money, you must first know where every penny you earn goes, and plan ahead for all your expenses.
It is recommended to divide your budget as follows:
- Allocate 50% for basic expenses such as housing, transportation, bills, and food.
- 20% for the retirement fund and debt repayment.
- 30% for luxuries such as gifts, travel, restaurants and shopping.
The best time to save is now
Sometimes you talk to yourself by postponing the start of saving until the next month or year, but at this time intentions and promises do not work, but you must immediately start saving. There are many ways to achieve this, such as depositing some money in a bank account or investing it in other things.
Saving starts at home
Success in achieving this goal begins with household expenses that must be focused on, such as electricity, water and heating bills. Care should be taken to:
- Avoid leaving electrical appliances burning such as lanterns, as this can save you 15% on your electricity bill.
- Turn off the water tap when brushing your teeth or cleaning your hands with soap, and this can save you 10 liters per minute.
- Adjust the air conditioner or heater at a suitable temperature, to rationalize electricity consumption.
Think about what you are going to buy and for what purpose
Whether the holidays are near, you want to buy gifts for someone dear to you, or you go out weekly for shopping, you should avoid expenses that are not programmed in advance. To achieve this, you can write a list of your needs before leaving the house, and adhere to them strictly, to avoid surprises when paying and when checking your bank balance.