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Saving money: nobody wants to do it. And when they do decide to do it, they end up failing miserably. Luckily, we’ve conjured up six saving tips that actually work – well, for us at least.
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1. Follow the 50/20/30 rule
\nIt sounds complicated, but it’s not. It’s pretty simple really: spend 50 percent of your income on essentials like food, housing, and transport; 20 percent on personal pleasure and care like going out, beauty, and fitness; and 30 percent on saving.
\nIf you don’t, I repeat, don’t, touch your 15 percent of saving money, you are bound to end up with a good amount every month.
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2. Know where your money is going
\nA lot of times, you hear people saying, “I don’t how my money finishes so quickly or where it goes.” But the truth is that even billionaires’ money would disappear if it wasn’t monitored. To keep track of your money, you need to know what you spend it on. So at the end of every week or month, if you will, write a list of your finances and the categories they went to.
\nEven if you don’t want to start saving right away, you will at least know where your money is going. This is a baby step to future saving.
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3. Find out what you’re overspending on
\nAnd try to spend less in those categories. One thing that could help you do this is bargaining for a better deal. For example, do you really need that expensive monthly gym membership, or is there a cheaper one you could find? The answer is yes, there are always cheaper options. They don’t have to be much cheaper, but any small amount of saving is good.
\nLittle changes go a long way when it comes to saving. For example, if you save AED20 every day, you will have saved nearly AED10,000 by the end of the year.
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4. Avoid sales and promotions
\nSure, you could indulge in a sale every once in a while with your 20 percent budget for personal pleasure and care – but sales and promotions can make you spend more than you had a budget for. They can also be highly deceiving because they lure you into buying things that you don’t actually even need.
\nIt’s best to buy smart without sale than buy recklessly with sale.
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5. Never use the words “I’m broke”
\nAnd by that, we mean “financially” broke. According to experts, one of the main differences between common and rich people is the way they each view money. Common people see it as something evil, while rich people see it as something positive. So instead of being negative about your money and/or your lack of it, be positive about how you can use it to your advantage.
\nSo instead of “I’m broke,” say, “I chose.” For example, I chose to save 15 percent of my income.
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6. Save first
\nAs soon as you get your pay check, put aside the money you want to save. Don’t wait one day or one week or until the end of the month to put that money aside. The more you wait to save, the less chances you have of actually saving. Put saving as one of your top priorities, and think of it as a “must-do.” Don’t give yourself a few days to think about whether you’re going to save or not.
\nThink of this step as the first splash of cold water on your face in the morning. You just have to do it.