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Tips to Saving Money

 Budgeting can make many people feel depressed - it usually comes with an unpleasant, difficult, or useless task. But, you can turn that all around with a few tips which will turn your savings into a real phenomenon, not just a myth everyone knows about but has never seen. Here are some tricks that make money a tool leading to a better life:
saving money

The 20/80 method

If using this plan, you need to apply the following actions:

1. Pay off all debts and any bank loans.
2. Invest in a business, or aim to save around 20% of your monthly salary - ensuring that this is the money you cannot spend.
3. Spend the other 80% of your salary in whatever way you choose.
4. Bear in mind to save first then spend the rest. 
5. If you think that 20% is too high, start at 10% or 5%, which will help you develop a habit and create an initial saving fund. 

The 60/10/10/10/10 method

This method works this way:

1. 60% for your main expenses (this being food, utilities, transportation, and clothing)
2. 10% for your retirement
3. 10% for long-term purchases (this being a car, a house renovation, or paying off debt)
4. 10% for rare expenses (this being things like repairing your car, visiting a doctor, or expensive gifts)
5. 10% for entertainment.
6. For any large debt, it is better to repurpose the 10% that you saved for retirement until you pay it off. 

saving money

The 10% method

This method will enable you to save 10% of your money from your total income. This small amount won't affect your budget, and neither will it have an impact on the quality of your life. It is better to put this money in the bank so that you do not feel the urge to spend it right away. If you find it easy to save 10%, you can try to save 15% or even 20%. 

The “halves” method

In this method, you are asked to divide your money into two parts - the first of which goes toward your everyday needs, and the second goes to the bank. When your cash on hand is gone, go to the bank and take half of the sum you have in there then repeat as needed. This method is suggested for those who find it hard to control their everyday expenses. 

saving money

The “4 envelopes” method

1. This method starts by counting the total sum of your upcoming income.
2. Next, you take the money for big purchases, or you save about 10-20% of your income.
3. After this, you take the money for regular expenses - such as rent, school, parking, etc.
4. THe remaining part of your income should then be divided into 4 parts, putting it into 4 envelopes, one for each week. This money will then be spent on anything you want be it food, entertainment or transportation. But don't forget about the budget you have.

The granny method

This is based on a simple idea. For each important expense category, you have a special envelope in which you write its name and the total that you need. You can divide the categories depending on the person and their lifestyle and it can include things like food, clothing, medicine, car, entertainment and so on. ALl the income is divided into parts, depending on the number of categories, and they are put into envelopes accordingly. Whenever you need money you take it from the relevant envelope and if you run out of money from the entertainment envelope, it is better to avoid entertainment you have to pay for until your source of income replenishes itself. If you run out of money from an important envelope - such as food - you take the money from a less significant envelope and adjust the future sum you put into this envelope. What's left may be spent or saved, depending on your goals and the amount of money left. 


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