26 Jul 2019
Saving money may sound daunting, but once the initial effort is put in, easing into the habit is not as difficult as it may seem! The key is to just start, and we’re providing some tips that may simplify the process:
- Keep a record
In order to save money, you must start by keeping track of all your expenses. That’s right – every meal, shopping venture and minor purchase at the grocery store, because they all add up! Organise your expenses by writing them down and categorising them, and keep them somewhere handy. There are also certain digital solutions that may help, such as Vault, which records your transactions on the app itself.
- Rid yourself of any debt
The most effective way to begin saving money is eliminating what you owe. When totalling the figures spent on your loans, it is easy to see just how much money you dedicate to paying off your debt, which could instead be saved.
- Set a target
In order to avoid falling for distractions, motivating yourself with a set goal is of great help. What are the things you would most like to save for? Is it a wedding, a luxurious expense or a comfortable retirement? You can then figure out how much money you will need and what is required to reach that figure.
- Budget and prioritise
When saving money, some things will just have to be sacrificed. Write down a list of the things you need to spend money on, and your wants. You must then choose between your luxury expenses according to your budget’s limitations. Always keep your income in mind and set aside money for spontaneous expenses.
- Decide on a monthly amount to save
After setting your budget, you may move on to deciding a fixed amount you can set aside per month, which can be transferred to a separate account in order to avoid using. Ideally, you are able to set aside around 15% of your income. If a percentage of this kind is out of reach, you might want to reconsider your budget and any unnecessary expenditures.
- Stick to your plan
You have successfully followed every step, all is left is to be consistent and keep to your budget while setting aside the monthly amount required. If you require any further assistance, contact deVere Poland for expert financial advice and a detailed savings plan!