During this global pandemic, most people are trying to save money from their salary. In these uncertain times, where many people are getting reduced pay or layoffs, savings must be a priority. Students and employees should try to earn money and maximize their savings as much as they can.
You should start your savings step by step. Recording your income and expenses can help decrease one’s costs a whole lot.
Here are five ways you can save money from your salary:
1. Start by managing your budget
As I stated earlier, you should start saving money from your salary by writing down your income and expenses. It will help you manage your budget and will help eliminate your unnecessary costs as well. You can also download and print the budget template. Budget templates prove to be extremely useful in savings.
2. Make and stick to a shopping list
Nothing empties your pocket like a trip down a shopping mall or departmental store. The best way to avoid this situation is by making a shopping list. Before your shopping trip, put down your needs on a piece of paper such as grocery, dairy, and household items.
Sticking to your shopping list is even more important than making one. That is why you must add a couple of your wants on the list too. It will help you refrain from abandoning your list.
3. Set up an emergency fund
If you set up some part of your salary every month for an emergency fund, it will protect you in times of financial distress. For instance: someone who had already been saving money for some months now at least will be better off than someone who had not.
Therefore, you must prepare yourself for any sort of financial crisis that you may have in the future. You can set up your emergency fund by putting a specific amount of money from your salary in a separate bank account. You must also make sure to do this as soon as you get your salary!
4. Explore different money-saving methods
After you make ways 1 to 3 your habits, you should start exploring different methods to save your money. There is an acclaimed Japanese money-saving method called Kakeibo. Kakeibo was introduced in 1904 by a Japanese woman. It is practiced all over the world to date. There is another method used for saving money called 50-20-30.
This method lets you save money by managing your needs, wants, and savings. It was made famous by Senator Elizabeth Warren. This budget rule calls for a 50% allocation of your money for your needs. From the rest half of the capital, you should save 20% away and spend 30% on your wants.
5. Reduce utility bills
A great way to save your money is through the reduction of your utility bills. Often, people spend more money on their electricity and other bills than they should be. You can save up a lot of money by unplugging and switching off electrical appliances that are not in use.
What do you think about these ways of saving money? Let us know in the comments below.
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