One of the questions that afflicts millions of families is how to save money every month and spend less money, in order to have more economic resources to set aside for the future or to invest in other activities. Many times we focus on raising the salary, the monthly income: it is a race to those who take more money from their work without thinking that you can earn a lot simply with small measures that allow you to put aside several thousands of euro in a year. Everything is in carefully organize their expenses, optimize the costs to be incurred to live and work in order to have as much money as possible at the end of the month.
Maybe you’re already a serial saver or you’re just looking for other ideas. The Italians, you know, are a people of rather careful savers and, despite the economic crisis, it is not uncommon to come across families with significant private wealth. Saving money is a good idea if you think of a large purchase or simply establish a comfortable financial future. This article provides some simple tips to understand how to save money by following some precautions. It seems that these 7 habits could save money. But, let’s find out how …
First of all, pay yourself
The easiest way to save money is to make sure you never have the chance to spend it. Determining that a portion of your salary is deposited directly in a savings account or pension fund or in a piggy bank allows you not to worry about how much money you should put aside each month; in practice, you save automatically and you can spend all the money you have left as you wish. Over time, depositing even a small part of every salary in your savings can make the difference. You decide how much money to deposit each month.
Avoid contracting debts
In some cases, getting into debt is essential. For example, only very wealthy people have enough money to pay for a house in one solution, but millions of people are able to buy property only thanks to mortgages to repay over time. In general, however, if you can avoid debts, do so. In the long run, paying the money due at the time of purchase is always a more advantageous solution than returning a loan that accumulates interest over time. If you cannot do without asking for a loan, try to pay the highest possible advance. The greater part of the purchase you can face right away, the sooner you repay the debt and the lower the interest will be.
Keep a personal budget
It’s easy to commit to achieving ambitious savings goals, but if you cannot track your expenses, it will be very difficult to succeed. To keep track of your financial progress, try to set a budget based on your salary at the beginning of each month. Allocating a portion of your income to all your primary expenses ahead of time may allow you not to waste money, especially if you immediately divide each paycheck as soon as you receive it.
Take note of the expenses. Respecting a budget is crucial for anyone trying to save money, but if you do not take note of your expenses, it will be much harder to reach your goals. Keeping track of your monthly outgoings can help you identify areas where you need to learn how to contain yourself so you do not spend your budget. To do that, you need great attention to detail. Although we should all take note of the most important expenses, such as rent and mortgage payments, the attention you should pay to smaller purchases depends on the severity of your financial situation.
Drive your old car
The reasons that drive us to the search for a new car may be different, but for this reason we are often in doubt and we do not know how to evaluate when it’s the right time to say goodbye to our old car. It’s true, the temptation is strong. But buying a new car would cost a lot of money. So you could drive our old car for as long as possible. This would then save money, before investing in a vehicle of relatively recent quality, with prices actually higher, without having the possibility to do so.
False discounts to incentivize the purchase
It’s hard to resist a good sale. When an item is sold, the temptation to buy it is strong, especially if it is 30 percent less. Retailers know this. But is that “sale” price really a special and reduced price? Not always. The truth is that many shops use “false” discounts to boost sales. Some stores seem to have perpetual sales on certain items, so the “discounted” price is actually the normal price and the shop will make the same margin. An attractive offer does not mean guaranteed savings.
Purchase of cheap clothes
Clothing can be expensive, but in general you get what you pay for. The brands of high-end designers are all focused on style and aesthetics, but most of the moderate to expensive pieces come at a price because of the quality of the materials and production involved in the process. Buying cheap clothes at a discounted local retailer could save you money in the short term, but those clothes will fall apart or vanish much faster than those you bought with a more expensive initial investment.
Adding products, free shipping
We’ve all been in the position of having $42 in a shopping cart, when $50 or more could earn free shipping. At the moment, it might make sense to find an $8-10 product to handle the balance in your favor – but if the shipment costs only $4, you’ll end up paying more than you wanted. Sometimes, the best choice is to opt for shipping or waiting to place the order until you have to purchase another necessary purchase.
Do not be discouraged
When you cannot save, it’s easy to lose your mind. You may think you have no hope; you will believe that it is impossible to find the money you need to achieve your long-term goals. Remember, however, that although your initial capital is small, you can always start saving. The sooner you start, the sooner you will achieve financial stability.
Saving money is much easier said than done; everyone knows that this is a wise choice in the long run, but many of us still have difficulty doing so. To save money it is not enough to spend less – and this is not easy to put into practice. The smartest savers also consider how to spend the money they have and how to maximize their income. Start from step 1 to learn how to bring realistic goals, keep your expenses under control and get the most benefit from your money over the long run. However, making changes to your existing lifestyle is not easy. Nobody is a perfect financial decision maker, but with experience, your decisions will end up improving.