Having savings but saving as much is enough are two completely different things to ensure personal financial health.
Granted, having a lot of money does not mean that it will bring you happiness, but you cannot deny the benefits of having a small accumulation or simply learning how to spend smart money so that you don’t have to. constantly in a state of stress related to personal finances.
There is a stark reality for many Millennials: saving or financial accumulation is always a problem between the many needs in modern life because consumerism is just waiting to draw us into shopping and consumption.
If you’re still wondering what you can do to start saving money, try these 5 special tips.
1. If possible, do not use a credit card
Credit cards are always advertised as a financial solution, but in fact, this is a significant financial burden and a problem for many Millennials. A scientific study has proven that using a credit card makes you shopping more unhealthier because the way you pay with a credit card can fool your brain. Meanwhile, cash spending will bring a clear sense of loss.
Obviously, credit card offers a lot of convenience, until you face monthly bank debt. Another tip is that you can use a debit card instead of a credit card, because you can still use the card in a transaction (if you care about its convenience) but it will only be within your ability to pay. At the very least, you won’t have to worry about having an unnecessary debt.
2. Rule 50-30-20
We can fall into the trap of thinking that spending on big things is what gets us in trouble, when it often does small things that cost us more. how to manage your expenses, including spending 50% of your earnings on essential needs (utilities, rent, necessities, food, transportation, etc.), 30% for things you “want” (things that make you happy like traveling, watching movies, etc.), and 20% to let you in the future (save, saving sollution, big sale, invest or pay off debt). This rule may not be easy to achieve, but you can change it a bit to suit your life.
3. Investment
Make an investment, even if it is a very small amount every day. Some invest in homestay business, cafe, real estate. An equally important investment is investing in yourself – your physical and mental health.
Savings accounts somewhere you can put some or all of your discretionary income – the amount left after paying for personal needs and taxes – and any breeze. You can avoid the temptation to spend this arbitrary amount by setting up automatic, scheduled transfers from your main account (trading account) to your savings account.
Kylie Travers, CEO of Occasio Enterprises, who owns and operates a number of personal finance websites, says rounding out your trading account balance is one way to make more money on your savings or your account.
Do not regret the amount of money you neglect your body or emotions, because you will not want to end up paying a greater amount than when health declines. You can invest with anything, as long as you seize the opportunity and you will be surprised at your own ability.
4. Create your own “emergency fund”
Once you have a certain amount of savings (usually at least 3-6 months of living expenses) depositing in a bank, besides the 20% per month you spend on the “future” life will become easier. A lot more than you can imagine.
You may want to quit your job at any time, or simply need an emergency money, having money set aside for helping you run, no matter how life turns out to be. smartest you can do.
5. Talk to a friend or colleague about financial matters
One study has shown that women are more likely to talk about death than about money. In fact, the subject of money is often considered a private matter, however, being more open to this topic may bring more benefits than you think, especially to colleagues.
Because these conversations will help you realize your worth in the work you do, you will have a clearer idea of the salary you want to get when you apply for a job or when you are promoted. Some conversations are also the source of money-saving ways (Coupons, deals, promo codes, promotion, sale-off, etc) where you can buy the same item for a cheaper price, etc.
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