We all very often hear that we should save money. But why is this so important? And how can you save money when life is so expensive? Experts are ready to answer these and many other questions! Just keep reading to better understand how to handle money!
Why save when you're aground?
If at the end of each month you experience financial difficulties, the idea that you need to have some kind of savings may seem ridiculous and even impossible. But in fact, experts say, it’s just extremely important for you to learn how to save money. There are a huge number of reasons for this, and here are the most important ones:
- Each person sometimes has emergencies that require financial investment. For example, your car breaks down or your computer explodes right before the deadline for term paper.
- No one is safe from the fact that he will stop receiving money. The reason for this may be bank errors or dismissal. What will you live in in such a situation? Financial experts recommend having an amount that is enough for three months of life - payment of rental housing and loans, utility bills, groceries, travel and entertainment.
- Something that you really want to do, for example, to go on vacation with your friends, to have an unusual weekend with your loved one, may appear. At the same time, savings will allow you not to get into debt.
Saving = Peace of mind
Having a supply of cash is very wise. And this provides a person with peace of mind. A sufficient amount of savings does not fill your life with despair if you are thinking about changing or losing your job or unplanned purchases.
In addition, saving means that you can do amazing things, for example, buy some things that you want to buy, go to interesting places or even start your own business.
How to save when you are aground?
Everything is simple. Try to keep the maximum that you can save. Over time, this will add up to a pretty decent amount. How to start putting off almost imperceptibly for yourself? Here are some helpful tips:
- Install automatic payments directly to your savings account, and then you will not miss payments. This is good because you will not allow delays, which means you will not have penalties and fines. Even if these are insignificant amounts, they are still of great importance.
- Start paying for things in cash. So you will be aware of exactly how much finance you have spent.
- Develop a budget and set a specific budget for the week / day. Try to spend money only on what you really need, and put the rest in a good piggy bank.
- By the way, in the same piggy bank you can add the change left after going to the store. The piggy bank will fill up faster than you think!
Is it better to save or pay off debt on loans?
Experts say: ideally, you need to pay off any loans for which you are forced to pay too high interest as soon as possible. The thing is that otherwise you will lose more money by paying interest than you receive from your savings. In addition, debt repayment is always a priority, because of which you can lose your home or car - this is possible if the vehicle or real estate is pledged by the bank.
But along with this, you can continue to postpone at least small amounts that will help you get an airbag that will help you stay afloat for a while if suddenly financial difficulties arise in your life.Calculate how much you spend per month, and multiply the amount received by at least three - this is the amount of money you need in order to survive difficult times.