HOW TO SAVE MONEY IF YOU EARN LITTLE: 5 PROVEN IDEAS (PART1)

HOW TO SAVE MONEY IF YOU EARN LITTLE: 5 PROVEN IDEAS (PART1)

 HOW TO SAVE MONEY IF YOU HAVE LITTLE INCOME?

 There are many ways to save money, but if you have never done it before or if you are currently in a tight financial situation, I advise you that instead of setting a  long-term saving and investment goal  (one that your mind can reach to feel like something difficult to achieve and therefore you are going to put it aside), start with easy savings challenges to meet.

 WHICH IS BETTER: SAVE OR INVEST?

 Although they are two different things and with different purposes, both are equally important for a good financial planning strategy, with a view to creating wealth.

 As a general rule, saving should come before investing, since savings are there to cover those expenses that, during any eventuality, we will need to keep up to date to avoid incurring debt and maintain a decent lifestyle.

 Instead, when we talk about investing money, we should think of long-term "savings", dedicated to increasing our quality of life and meeting future goals.

Now, choosing between saving and investing will depend on the current situation of each family or individual and they're short- and long-term goals; as well as your risk tolerance. 

 HOW TO SAVE MONEY EFFECTIVELY: 5 OF THE BEST WAYS TO SAVE MONEY IN NO TIME

Here we compiled 5 of the best ways to save money in no time, ranging from adjusting those small daily habits that lead to dozens of ant expenses every day, to reducing large monthly bills and making long-term changes in mindset. Let's see what they are.

 1. MONITOR YOUR EXPENSES

 The first step to being able to save money is to know where we are spending it. You can use a simple Excel sheet or one of the thousands of applications that exist to keep track of your expenses.

 2. CREATE A BUDGET

 Once you have an idea of ​​where your money is going, the next step is to make a budget. Keep in mind that you must include irregular expenses, such as a trip to the movies, a vacation, etc.

Make sure you create a category for savings and ideally you should budget at least 10% to 20% of your salary there. I know that at first, it will not be easy, but as you discover new ways to save, you will increase this percentage.

 During the month, frequently monitor your budget and make adjustments as needed. At the end of each month, do an evaluation and reassign priorities.

 3. APPLY THE 30-DAY RULE

 If you have a major purchase on your mind and your goal is to save and invest money, you'd be wise to consider giving yourself 30 days to reflect. Meanwhile, find out alternatives, compare prices, and above all, ask yourself if this purchase is really necessary and how you could save money if you really have to do it.

 If at the end of 30 days you have convinced yourself that this is what you really need, then buy it.

 4. PRACTICE THE 24-HOUR RULE

 If you think the purchase is urgent and you don't have 30 days to think about it, at least apply this other rule.

Personally, I was a compulsive shopper and this is one of the techniques that has helped me the most, to save thousands of dollars and opt for a minimalist lifestyle, even though today I have several extra incomes.

 It basically consists of thinking well (in this case at least for 24 hours), before making any type of purchase.

 5. INCREASE YOUR INCOME

 Ahhhh….yes of course, as if it were that easy…!! It is something that you will surely tell me; but I swear to you that if you stop thinking and instead decide to take action, multiplying your income is easier to achieve than you think. 

 And it is that, although it is true that reducing our expenses is a part of the equation on how to save money quickly and easily, I assure you that, to reach the goal of achieving financial independence, the part of increasing my income has been the most important.