You can successfully accumulate capital even with a small income. The main thing is to know which methods really work and how to save money correctly. As a rule, the higher your income, the greater your needs, and with them, your expenses increase. It is important to set a financial goal correctly and follow it relentlessly. If you still have problems with money and need a payday loan, you can always contact the reliable and secure Payday Depot to quickly and easily get the necessary money before payday. To save money for anything and be able to manage it correctly, learn about 5 successful and effective methods of saving.
Methods for successfully saving money
The basis of any savings is financial planning: it is necessary to keep track of expenses and income, predict future income and expenses, and learn to think ahead. Try to use 5 simple but time-tested methods for successfully saving money that will help you reach your goal, even if you have problems with self-discipline.
6 Money Boxes
According to this method, all cash receipts are divided into six categories:
- Life
- Savings
- Entertainment
- Education
- Large purchases
- Present
In this way, the money earned can be divided into 6 different boxes, or if it is more convenient for you to deal with non-cash payments, then create 6 different bank accounts. So, how to divide the salary so that it is enough for all categories? You should divide all funds according to the proportion: 55-10-10-10-10-5.
- 55% is a percentage for everyday household expenses such as utilities, food, transport and communications, clothing, household goods, etc.
- 10% is savings for unexpected expenses in the future.
- 10% is a percentage for expensive purchases that you can do without in everyday life.
- 10% is a percentage for training or self-development.
- 10% that you can spend however you want and on anything.
- 5% is intended for gifts and charity.
4 Envelopes
The 4 envelopes method is based on weekly planning of family expenses after the necessary amounts have been set aside from income for financial purposes. First, count the total family income for the month. Then calculate money from it for medium- and long-term financial goals and put it in a piggy bank. From the balance, you need to subtract money for recurring expenses from month to month, such as loan payments, utilities, gasoline, etc. Divide the remaining amount into four parts and put it in four envelopes: this is your budget for the week. You can spend the money from the weekly envelope as you wish — the main thing is not to exceed the allocated limit.
Automatic piggy bank
The automatic piggy bank method is based on the principle of automatically writing off a certain percentage of income for savings. Most large banks have such a tool today. It automatically transfers a small amount of money from the main card to a separate account — a percentage either of each money received on the card or of each transaction made.
Resetting to zero
The reset method is based on the principle of putting aside a little money every day. Every evening, you need to reset your accounts and wallets. That is, so that the amount in your wallet and accounts is rounded up, and the entire balance is put into a piggy bank.
Latte effect
The essence of the method is that if you want to buy coffee or some other small thing that you can do without, set aside the amount of the purchase that did not happen to a separate account. This way, small but consistent savings every day can yield big financial results.
