When we’re talking about saving money, it’s common to automatically assume we earn little money, that the next pay day is far away or that we are on a “tight budget”.
The reality is that we all have the ability to save, as long as we comply with the formula: a) make a budget and b) reduce unnecessary expenses.
Three easy ways to start saving once and for all
Nearly 1 in 5 Americans didn’t save any money, according to data from the latest Magnify Money Savings Index.
In order for you to be part of the percentage of savers or improve your savings, I share with you different schemes that you can adapt according to your income.
Option #1: A Fixed Amount
It’s an amount that you allocate monthly to your savings (even if it rains, or it pours), you can separate it from the moment that you receive the income (salary, your fee, batch, among others).
This is an amount that you define, and it will be dependent on how much you earn and how much you can allocate for savings. The recommended amount is 20% of your salary (you decide if you want more or less), the idea is for you to feel comfortable with the new habit.
Option #2: A Percentage
If you have a variable income (commission payments, fees, or another form), the most appropriate option is to allocate a percentage of your income for that savings amount. Some months it will be more, or it may be less, but you won't feel the pressure to save, and you’ll do it gladly. Remember, the important thing is to continue saving!
Option #3: A Goal
If you have a specific goal with an already predetermined date, check the amount you need and the time you have to save, here you can save in a fixed way and make extra contributions to reach your goal faster.
Example: A brand-new car, travel, or buying something that you’ve been planning for a long time.
Identify which form of saving you feel the most comfortable with and start. The critical thing is to save, you can start by keeping it stored in your piggy bank, separate it in your payroll account or in a banking institution that will bring you returns over time so that your money does not lose value.
