The importance of saving money is in preventing future unexpected events that can put us in debt. Although saving presents itself as an outlet for these ambushes, it is not always so simple to save money in practice, so we brought this article that will teach you to save money through your budget. Stay with us!
Assess whether your income covers expenses
Before you start saving you need to know if your monthly income is enough to cover all expenses, from basic necessities to your “pampering”, from this it is possible to organize and save money.
If you still do not have an organized and constantly updated financial planning, start by listing what your basic expenses are, ie, fixed expenses such as food, energy bills, transportation, etc. Once this is done, list variable expenses, such as spending on leisure.
If your income is less than all your expenses, it’s time to start cutting some variable spending so that you can save money from that money that will be left over.
The advantages of having a financial reserve
It is not possible to predict situations that can put you in debt, but it is possible to be prepared for these events, this financial reserve is precisely for that. You will never know if you will need to repair a pipe from your home or if your pet will need a veterinarian, with the economy you can get rid of a tightening moment.
By learning the habit of saving you will see that it is possible to do without feeling in your budget. Try to do this by depositing every day of payment a portion of your salary into a savings account, even if it is a small amount at first, over time it will pay off and accrue interest so you have more money available when you need it.
Saving to get out of debt
To pay off your debt, the recommendation is the same, do a financial planning and see what your expenses are, and from there how much you can book month by month. If in your case the amount is not enough, consider the idea of making a personal loan to pay your debts and set up a plan, so if your name is denied it will be clean and you will have money available to start using the same amount doing economy.
How much to save?
In fact, there is no fixed amount to be saved, you must first remove your fixed and variable expenses from your budget and the rest reserve, this calculation should not affect your basic needs.
An initial suggestion is to save 10% of your income, but always prioritizing the payment of your fixed expenses and leaving some money reserved for leisure. If you can get through the month without counting those 10%, then this is the amount you should save every month. Even if you can not get 10%, start with a smaller amount, so you’ll be wary of unforeseen futures. But remember, if you’re in a pinch, count on Financial Group and request your personal loan online, free of bureaucracies, 100% safe and fast.