The best method do you use to save money

The best method do you use to save money

The best method do you use to save money

Many people try to save to be able to make future purchases or face unexpected expenses, especially in light of the pandemic and its consequences, but they do not always know how to do so, and their savings strategy is rarely effective, and with the help of these methods, you can Learn to save easily.

Japanese “Kakeibo” method of budget management

This method is based on recording expenses and fixed income (salary, water and electricity bills…) so that at the beginning of each month you determine the amount of money that will be available to cover the rest of the expenses, and with each spending process, you must specify the date and type of spending: clothes, food, entertainment or cultural activities. You should write down every small and big expense, and by recording everything in detail, you will be able to know all the unnecessary expenses, and those that you have to get rid of to save money effectively.

This method was invented by financial expert Jose Carlos Alvarez Jimenez, founder of the blog “What is the Euro” and is very useful and effective, but it requires a strong will. It is based on allocating a percentage of your income for savings and adopting the rest to cover your expenses for the rest of the month. In this case, the challenge lies in finding solutions to stick to what you have in your balance after transferring a percentage of your income to a savings account.

It is necessary to determine the amount of money that you get each month, along with the expenses and the area of spending them, and the expenses should be divided into two boxes, the first for necessities and the second for luxuries. Temptations.

The 52-week challenge

This method is to save money for 52 weeks in a piggy bank or box, and this challenge imposes an amount of money for each week of the challenge, in other words, in the first week you should put one euro in the piggy bank, and two euros in the second week, and so on until you reach To week 52 where you have to put 52 euros.

In the end, you will have saved 1378 euros, it is a form of gradual and continuous saving where you have to make an effort to find a way to cut out some unnecessary expenses.

30 day challenge

This challenge is similar to the previous method, but in this case you have to accumulate several euros in one month, which will help you to have a “safety reserve” in a few months. In this case, one euro should be saved on the first day, then two euros on the second day, and the same thing should be repeated with the rest of the month until the 30th day. In this way, you will have a total of 465 euros. And if your income is low, you can allocate less money to save each day, and the important thing is to get used to saving, because the results are worth it.

Harv Eker method

In the book “Secrets of the Millionaire Mind” Harv Eker proposes a simple system for distributing income according to percentages so that you can be able to save. You should divide your income each month as follows:

  • 55% of the income is for basic needs: housing, water and food.
  • 10% for savings (this money can never be touched).
  • 10% for skills development: books, stationery, courses, exhibitions.
  • 10% for a long-term investment: such as getting a driver’s license, taking a family trip, or renovating the living room furniture.
  • 10% for entertainment.
  • 5% for donations.

This way you can save without depriving yourself of anything.

envelope method

Although this method dates back about 80 years, it is still effective. You must receive your entire income in cash and then determine all the monthly expenses that you must cover. Once you know how to divide your income, put the amount allocated for each type of expense in its own envelope. Once you’ve distributed the money into the envelopes, you’ll know how much money you have available for other, less important expenses, along with allocating 10% of your income to savings.

traditional way

This is the most simple method of all, basically putting money in a piggy bank, this method may be really old, but it is effective, and while the money collected in the piggy bank may not be important, saving money in the bank is the first step towards getting used to it On saving, it is also advised to put the remaining coins we have after shopping in the piggy bank, and when the amount accumulated in the piggy bank becomes significant, it must be deposited in a savings account.

 

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