How to save money at any salary


Everyone knows that you need to save for retirement, big purchases or education. But not everyone can do without a daily cappuccino from a nearby coffee shop or a trip to the new blockbuster in IMAX. We tell you how to refuse unnecessary expenses, get closer to financial goals, but remain happy.

Why save money

Money is a tool that creates a prosperous life not only now, but also in the future. Proper budget management and savings are a chance to influence the prospects, and not depend on the state, the economy, the employer or random circumstances.

1. To have an “airbag”

Save up for a crisis. Then a job loss, a car breakdown, a bad tooth, or some other unexpected problem won’t be a disaster.

When buying jeans at a discount is perceived as an opportunity to spend the remaining money on food from a delivery service, saving for a rainy day is difficult. If it comes, you have to get into loans or borrow from friends. The personal economy becomes more complicated, because debt increases the list of mandatory expenses.

2. To create a pension increase

The sooner you start saving money for old age, the larger the amount will be by the time you leave your last job. If you save at least 100 rubles every day, in 40 years you will have 1.46 million rubles. Of course, inflation will change the real value of this money, but investment tools will help protect against it and increase capital.

3. To invest

This goal overlaps with the previous one. Investments in securities, precious metals, financial instruments – the ability to save and multiply. Putting the saved money to work, by the age of 50-60, you will have collected such capital that will allow you to retire as early as possible and live off passive income.

4. To invest in yourself

Investing in yourself means staying in demand. Learn new skills and develop current ones: learn English, improve your skills, study business tools or another specialty.

Today, front-end developer is one of the most needed professions, but perhaps in 10 years, interest in them will decrease due to the emergence of bots and DIY services.

5. To educate children

The traditional university system of education is losing relevance. But education itself is needed more than ever. Good knowledge pays well. Whether you choose a public academy, a private university, or online education for your child, money will be required.

How to save money: 5 strategies

man reaches into his wallet

1. Save 10%

Anyone can take 10% of their salary and save. With an income of 50,000, 60,000 will be accumulated in 12 months. Next year, put this amount on a deposit in a bank, protecting it from inflation.

Even with a salary of 20,000 rubles, try to save. If you find it difficult to “tear off” 10% at once, start with 5% or 1%. The amount will be small, but it will develop a habit.

2. Pay yourself

Before you pay your basic expenses, pay yourself first. Set a precise goal and deadline. So, you will have a clear motivation. For example, to accumulate 700 thousand in two years for an initial contribution to an apartment. Decide how much you’ll save each month. When you receive your salary, immediately transfer this money to yourself.

3. Divide your salary into five envelopes

Divide your monthly income by 5 and put that money into 5 envelopes. Each of the four is a budget for one week. The fifth envelope is savings. If it is problematic for you to divide the money equally, put 15-20% in the fifth envelope. The main thing is that this amount remains stable from month to month.

4. Automate payments

Set up a monthly transfer in the banking application to a separate account. It helps pay yourself automatically. You don’t have to worry about how much you save every month, but managing a reduced budget will become a habit.

5. Get a cashback card

Cashback is a marketing feature of banks that encourages you to spend more. But you can make it work for you. If your card receives 5% cashback at gas stations or supermarkets this month, use only it, not cash. You will still spend the conditional 10,000. But the bank will return 500 rubles. Then send them to the piggy bank account.

How to save money with a small salary

rubbish in hand

The principles of accumulation are the same: set clear goals, make a plan and do not give yourself any indulgences.

1. Analyze expenses for 2-3 months and remove what you can refuse

Often the amount of unnecessary whims that we allow ourselves is surprising: fast food, bad habits, an excess of children’s toys, home accessories, useless gifts. If you exclude such expenses from the budget, you will save the same 10%.

2. Reduce Mandatory Spending

Use light and water more economically. For example, load the washing machine drum completely. Do not idle it by placing a small amount of clothing. Plan the route and time for travel by car. So, you will not burn gasoline in traffic jams, leaving the dacha on Sunday evening. Switch to a cheaper Internet provider and mobile plan. Call the operator and ask about how to reduce maintenance costs.

3. Do not take loans and loans

Loans are one of the main causes of bad financial situation. Buying something on credit, a person buys something that you cannot afford. Therefore, do not take money from banks and microfinance organizations for a new phone or TV.

Credit is justified when you are doing business. For example, you need another minivan to deliver goods. The debt will be repaid from sales profits, not from new debts.

4. Buy from a list

And even better: on a full stomach and in time pressure. It has been proven that a hungry person buys more than he needs in the store. As well as someone who has time to calmly examine each shelf. Put yourself in a position where you know exactly what you will buy and do it quickly. There will be fewer spontaneous and optional purchases.

5. Don’t procrastinate

When after transferring 10% there is free money, reward yourself for the successful work with your personal budget. The main thing is that these 10% remain stable.

How can you saveman pays by card

  • Look for discounts on what you need, and don’t just buy because of a big discount.
  • Conduct “financial hunger strikes”. For example, a week without going to the cinema, cafes, bars, shopping centers and unnecessary trips by personal or public transport.
  • Plan your vacation in advance. Airline tickets and hotel rooms are cheaper if booked 6-8 months in advance. Plus – you can choose the best offers, while everyone is pulling to the last.
  • Use coupon services and discount cards.
  • Increase your income. Increasing wages help you save more money and move faster towards financial independence. That is why you need to invest in yourself.

Read: Personal financial plan or how not to spend all your money on coffee

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