We all have the power to change our financial life and this twist could start with a simple first step: save money.
No matter if we have low or high income, this first step is the hardest one.
That’s why we are going to show you a few rules and tips to star saving money.
Of course, this won’t make a huge difference from the beginning, but over the time would be really helpful if you apply them properly.
Follow some of these suggestions and, easy or with big effort, and you’ll save money without even knowing it.
Give it a try on the 30-day rule
According to Lifehacker, this will help you from an impulse buy.
That’s how it works: If you feel the urge to spend lavishly, force yourself to stop.
If you’re in a store, buying shoes, clothes, a car or whatever you want, put the item back and leave the place.
Back at home, write down the name of the item, the store, the price and the date in a piece of paper.
Post this note in a visible place, the fridge, a file on your computer, a calendar, etc.
Now, for the next thirty days, think whether you really want the item, and, by the end of the month, if the urge is still with you, then think about doing the purchase.
The 50/20/30 budget rule to control your incomes
Investopedia show us this rule popularized by Senator Elizabeth Warren in her book “All Your Worth: The Ultimate Lifetime Money Plan”.
Simply divide the after-tax income this way: spending 50% on needs, 30% on wants and 20% on savings.
Needs are the necessary things and services to survive. Rent, mortgage payments, car payments, insurance, food, groceries, health care and basic stuffs.
Wants are those not essential things. Dinner and movies out, those shoes that you love, tickets to a concert, vacations, Netflix, internet and the latest electronics gadget to dye for.
Also include here some “luxury” food, the expensive car and cable tv.
Savings and investments are the real deal.
This part will be the fund in a bank savings account for an emergency, or investing in the stock market, for example.
Don’t collect, sell! Once people thought their collections would make them riches. But that’s not true.
Collecting items of questionable value is not a great financial movement.
If you want to recoup some of the money you’ve already spent, star selling and save that money or use it in another financial goal.
Control your credit card use. These are for emergencies, so don’t keep them in your wallet, but in a safe place at home.
If you love to use them all the time, forget about them and keep them out of sight.
Holiday shopping after the holidays is a good idea. Wait until two or three days after a holiday and buy the items that you really need.
The discounts on this date are amazing and you can save these things on your closet for the next holiday.
Don’t fall on the compulsive shopping of these days, and less on buying things you don’t need.
Some good tips to save money? Tell us yours.