We all know that nothing provides more security than having a cushion of money for emergencies in the bank, save for major purchases instead of resorting to credit, pay for the insurance we need or grow our pension fund or mutual fund.
But, especially in this day and age, many people wonder how they can get that kind of savings for the future when just enough money to make ends meet. But saving begins in the same way to make a journey of a thousand miles: taking the first step (and in this case, a single step).
Here are five ways to start saving without making sacrifices too painful:
1% Automatic Transfer
The best way to save money is nothing more than an income, newcomer to our hands. That is easy to do by establishing a fund automatically transfers to your savings account or pension plan. That way you will not fall into the temptation to spend it.
Start by setting up an automatic transfer of 1% of your salary. Although it may seem that 1% does not even deserve such an effort, it is still more than you save if you did not. Once you get used to having a little less of your money, you may be increasing your savings in another 1% or more. Set aside 1% is not noticeable, but over time it all adds up.
Save the change
It is the oldest trick in the world, but still works. Keep at home a piggy bank or a jug to store loose coins and deposit them in your savings account once the container is full.
As soon as you notice a change in your finances, and you’re adding money to your savings. You can get greater motivation if you put a label with the goal you have set.
Reduce the payment of commissions on ATM
If you take money from ATMs regularly, you are aware that the fees can add up to a good amount. If you do not want to completely give up this practice, try halving the number of times you go through the cashier.
For example, if you are used to withdraw money twice a week, do it only once pulling out twice and avoiding the second Commission of the cashier. And while you’re at it, fail to transfer the amount you’ve saved in commissions to your savings account. Ready! You have spent the same amount of money, but in this case, you have managed to save.
Continue Paying Loans
There is nothing more satisfying than paying the last letter of a loan, especially large purchases such as house or car. However, this is no reason to stop doing the “payment”.
Instead, as you’ve already accustomed to live without this amount, you can redirect the money to your savings account, your mutual fund or your pension plan. You can get a buffer of extra savings without feeling you’re going through great hardship.
Deposit Extra Money
Sometimes we receive money that we did not expect – a tax refund, a small prize in the lottery, a ticket that we find in a pocket or on the street – and it is really nice instead of spending without more, we can enter it in our savings account. It is money that did not count, so we do not miss it.
And if the amount is large enough, we can treat ourself before putting the rest in a safe place. This way we can enjoy some of our good luck.