Saving money is difficult. There is always the temptation to spend the accumulated amount. And starting to save is even more difficult. After all, you have to gather all your will into a fist and abandon the excess. We asked the experts, is it possible to save money and still have full and haply life without deprivations of all the fun?
It’s impossible and at the same time possible
Financial Planning Consultant for individuals Jack Matthews believes that saving and not denying anything to yourself is impossible and at the same time possible. It all depends on what you mean by “do not deny yourself anything”:
- If we are talking about a phone worth three of your salaries, it is unlikely that with this attitude to life you can accumulate a serious amount.
- If there is a feeling that there is always not enough money, try to get rid of this feeling, then it is quite possible to make savings.
To stop physically experiencing a lack of money and at the same time create savings, awareness and understanding of sufficiency are required.
What to do to start saving
Always act consciously. Before you buy something, ask yourself, will a purchase really improve the quality of your life? If not, discard it. The difficulty is that you need to ask this question every time you get a wallet. It’s even better to ask yourself about it as soon as you have a desire to spend money.
“Enough” is the motto of people who accumulate capital and at the same time enjoy life. Choose:
- not the best, but good enough;
- no more clothes, but enough to look dignified and stylish;
- not the most powerful / fashionable car, but sufficient for everyday needs.
That basically means that you need not to cut costs, but to optimize them. This is a big difference: to cut back – to abandon the necessary, and to optimize – to reduce the excess.
Choose on what to spend money
A person must choose what he wants, one salary is not always enough for all of your wishes. Therefore, you need to choose: create capital and save money or not deny yourself the desires.
By and large, everyone should make this choice. Choose the satisfaction of current desires – you will please yourself now and refuse future welfare. If you choose savings and investments, you will deny yourself the small momentary joys for the sake of great emotions and cool purchases in the future.
To start saving, you need to understand why these accumulations are necessary, and set a goal to learn how to enjoy what you managed to save, not to buy something. Afterall, savedisequaltoearned.
How to spend less and not feel that you are denying yourself something important?
Any financial consultants suggests using five tools with which an ordinary family without extra income can spend less and not feel that they are denying themselves the necessities.
- Save 10–20% of income to the piggy bank monthly. To avoid the temptation to get this money and spend, apply four more tips.
- Buy products in the market or in hypermarkets. The cost of food expenses will decrease by 15–20% compared to a convenience store. Go on a reconnaissance and compare prices to see this. And what’s important – go to the store without children.
- Refuse from expensive brands, including when buying food. Savings up to 50% without loss in quality.
- Do not buy clothes in separate items. For a while, refuse such purchases. Save money on a whole wardrobe or a large set of clothes. Before buying, look at available things, get rid of unnecessary ones and create your perfect look. When you buy everything to look perfect, for a long time you will not have a desire to buy “both that and this blouse, and also a shirt in addition”. For the year, savings on wardrobe will be 30-40%.
- Before saving up, spend the money you saved on repaying loans: proceed sequentially – start with loans with the highest interest rate.
- And do not forget to consider all the opportunities to earn more: study the situation in the market, master a new profession, find a side job.