How to save: Saving money is challenging, especially if you have many things to spend on, for example, a Netflix subscription or betting via this website link. But these 5 strategies will help you achieve your goal. Â
Pay Yourself First
The rule was popularized by Robert Kiyosaki. Its meaning is that after receiving income you must first direct part of the money to savings and investments, pay yourself in the future, and then spend the money on everything else. According to Kiyosaki, this method develops self-discipline, without which it is impossible to save a large enough amount of money.
The 30 Day Rule
This rule will help avoid unnecessary spending for those who are prone to impulse purchases. The main advice for them is not to buy the thing immediately, but to wait 30 days. If after a month thing will still be needed, it is worth buying it. By following this principle, you can get closer to the ideal of conscious consumption and learn not to spend all the money at once.
The 6 Pitchers Method
A way of allocating your personal budget, first described in Harv Ecker’s book. income should be divided into six pitchers or envelopes. If you pay mostly online, six different virtual accounts, which you can open in the bank’s mobile app, will also work. The first “jug” contains 55% of your income. This money will be used for the essentials (rent, utility bills, and food).
How to save effectively
The second one contains 10% for savings, which can be used for major purchases, vacations, and keeping in the account as a safety cushion. The third “jug” also contains 10% for entertainment. The fourth is for education (books, courses, professional development, working with a coach), another 10% – a contribution to future financial freedom, it can be just savings or any investments. Finally, the author proposes to spend the remaining 5% on charity.
10% of Income
If you found the previous system too complicated, then try to put 10% of all your income in a separate account. It is believed that this is a comfortable percentage that will allow you to create savings without too much belt-tightening. But if you want, you can change the proportion: some advise to set aside 20% or a fixed amount that you determine yourself, such as 10 thousand rubles from any income.
The Snowball Method
This method of getting even with debts was suggested by financier Dave Ramsey. He advises to make a list of your loans, and first concentrate efforts on the smallest. The rest should continue to be paid, but in the smallest possible amounts. After paying off the smallest loan, revisit your debt obligations and concentrate on the smallest one. This method should be used if the terms and percentages of your loans are about the same. If one of them has a higher interest rate, it is worth trying to repay it faster.
