The hardest thing about saving money is getting started. Review these tips to easily define your savings plan and use your money to achieve your financial goals.
Record your expenses. Before saving it is necessary to know how much you spend. For a month, record everything you spend in cash, with a card, in transfers, payment of credits, etc. Every penny. Then organize the expenses by category, such as: mobilization, food, housing, etc. and get the total of each one.
Make a budget. With the information from the registry, create a budget to plan your future expenses according to your income. It includes monthly expenses and also those that are not regular, such as entry to classes or car maintenance. You can guide yourself with this tool.
Define the amount of savings. Include in the budget the item “savings” and allocate at least 10% of your monthly income. If your expenses do not allow it, try to make a cut, look for unnecessary things that you can spend less on, such as food away from home.
Set goals. It’s easier to get started if you have something in mind. There are short, medium and long term objectives. Define how long it will take you to reach each one. For example:
Short term (1 to 3 years): emergency fund, holidays
Medium term (3 to 5 years): automobile
Long-term (from 5 years onwards): retirement, children’s education, entry into a house
Decide. Identify the most important savings goals for you. Analyze how long it will take you to save to reach them and how much you can save per month. Sort them by priority and write that amount down in your budget. If you choose some, others may have to be postponed.
Choose savings options. Depending on the term of your goals, you can choose between a savings account, scheduled savings account, profitable savings account or certificate of deposit (policy).
Take advantage of transfers. It is easier to save if the money does not pass through your hands. Request an automatic transfer or do it yourself as soon as you receive your income. Make saving your first expense and pay yourself every month.
Watch your savings grow. Check the total savings you have each month. This will help you stick to your plan and quickly identify and correct problems.