Days ago, we celebrated World Savings Day. Everyone talks about saving, but few do… Many know the benefits and yet they are won by the instant satisfaction of certain “needs”. In this article we will highlight the benefits of planned saving on World Savings Day. We will start with a phrase by Cesare Cantù, an Italian writer.
“Always spend one less coin than you earn”
These wise words speak to the basic essence of saving. Without a doubt, you have to start with something. However, in modern times we all know the phenomenon of inflation, and so today we will talk about the right ways to save.
Without more to add let’s start
How to save if I don’t have enough money? World Savings Day
This is the phrase that many people repeat every day. Certainly, there are people who live on the edge without spending more than necessary. But there are too many people who have great opportunities to save waste them. That is why today we will give you some indications of how we can start saving.
Our first step should be the phrase we mentioned in our introduction, “Always spend one less coin than you earn.” This phrase encompasses the key to saving, simply saving is not a process of saving massively. Saving is a slow process that requires perseverance.
Sometimes we think we have nowhere to save. “How am I going to save if at the end of the month I have no money left?” we sometimes tell ourselves. Other times we have even gone into debt and how will I save if I have debts. Debt is a cost every month. In principle, the first way to save can be to pay our debts. However, this is not always true as we will see later.
To save we must consider two fundamental factors: the cost of our debts and inflation. Without considering these two factors we can equally save, but our strategies will have to vary. If we have no money left at the end of the month, the first step is to make an expense budget. For that we will proceed to talk about how to make a good budget of expenses.
A budget of expenses to save on World Savings Day.
Most of the time we don’t know where our salary is going. We tend to quantify very well the fixed and large expenses such as electricity, water, food, or mortgage. But we miss the minor expenses of every day or the so-called “ant expenses“.
These are expenses that because they are small are always ignored but that generally occur more frequently than we would like to recognize. It is its high frequency that makes these expenses become a greater weight than we really think.
That is why in our budget we must emphasize ant expenses to be able to quantify and control them.
Quick guide to questions to identify ant expenses on World Savings Day.
Undoubtedly, one of the keys to making a good budget is to quantify ant expenses. In ordinary people this expense can reach between 10% to 30% of the budget.
Do I have any habits or habits that I do almost daily and involve spending money?
We can all have recurring habits, but those that cost us money can be the key to our savings.
Examples of this are cigars for smokers, the cup (or cups) of coffee that we drink in the company’s cafeteria, meals on the street, beers in the pours and Saturdays, etc.
These expenses must be quantified meticulously and multiplied by the number of times we make them in a month.
Do I buy a particular brand of product that is more expensive?
There are products that have an extra cost for their supposed quality. Brands charge us for advertising their products. Sometimes the price difference is justified, but in others there are much cheaper products that can yield the same results.
It is important that we try new alternatives or seek advice with our friends. It is not about being stingy, but by decreasing the cost of a product we can save that difference and use it for other expenses or in our savings.
Quality and cost do not always go hand in hand, and we must take that into account.
Do we buy in the first place we get to save us time?
This is one of the most common ant expenses. This is presented because we do not plan our monthly purchase correctly. Something was missing or we ran out of time. That leads us to buy in a place close to home, but more expensive than usual.
If this habit is repeated weekly, we can be sure that there we have an opportunity to save. If we plan our purchases correctly, we can save.
Do we buy sweets, treats, or our recurring cravings at the corner cellar?
Many times, a craving is just that. But when it happens every day, we have two options: abandon it or buy in quantities. This applies to weekend beers, sweets, cigarettes, or any other habit we have.
Sometimes resorting to the corner warehouse is a psychological strategy to “not formalize” this expense. In this way we deceive ourselves, but that deception costs us high, both psychologically and economically speaking.
If we buy in quantities, we can get discounts that allow us to save the difference. If we abandon them we can save their totality. What do you choose?
Can a budget really help us save?
The short answer is yes. A budget can help us save because it starts by showing us how much and how much we spend our money. This can raise important alerts about our hidden behaviors.
We can become aware of how much money we spend on cups of coffee, cigars, alcohol or treats. We can also realize how much money we spend extra for not planning our purchases well. This adds up little by little until it becomes a bottomless hole. Therefore, realizing what we do unconsciously can help us organize our finances.
The extra money we get with our finances can become our savings or our way of paying our debts. If anything, we are gaining something. Saving or paying off our debts should also be a conscious decision. In the next installment we can see a series of tips to make the best possible decision.
Saving is not something that happens simply, it is a conscious decision… Let’s become aware and save to have a calmer and happier life. Let’s follow the advice of Gustavo Mirabal, your trusted financial advisor.