Unplanned expenses are the weak point of almost all of us. Sometimes they are unavoidable, such as medication during a serious illness, but often they are simply the result of our impulsiveness. Such expenses often mean that at the end of the month we are short of money in our wallet and according to media reports, this is the main obstacle on the way to saving.
Most of us will admit that we don’t save because we can’t afford it - we have no control over our own finances, and we don’t have control over them because we don’t plan expenses. Interestingly, almost all of us are aware of the importance of saving. It’s about putting this knowledge into practice.
Every enterprise, regardless of its size, creates a budget from time to time - it sums up its potential revenues, plans costs, sets aside funds for investments, and determines provisions for unplanned expenses. This allows them to efficiently manage their finances and helps to keep up with the budget and grow.
Controlling the flow of funds is a necessity for a company, however, a household can also be seen as an enterprise, but on a much smaller scale. Creating a household budget will allow you to tame your own finances and set aside some capital. Eventually, unplanned expenses will be under control, credit cards will be covered with a layer of dust, and the sum of savings will increase. All this, in turn, will have a positive impact on your creditworthiness - a higher own contribution is almost a guarantee of better conditions for obtaining additional financing, and the lack of a credit card or a revolving debit at the bank is a bonus.
How to save up?
The most important thing about saving is being systematic and developing good habits. It's best to start with small steps. At the beginning, you can save up small amounts, giving up on the things you need the least, the lack of which will not be severe. You should think about saving as soon as you receive your monthly payment.
A good solution is to set aside a specific amount of money and transfer it to a savings account or bank deposit every month. Putting aside money should be treated as another cost in your household budget. It is worth setting a goal for which the savings will be allocated. The achievement reached (e.g., going on a dream vacation) will effectively motivate to continue the habit of saving.
How to save effectively?
At the beginning of your adventure of saving, it is worth setting up a separate bank account in the form of a savings account or a deposit. These accounts tend to have higher interest rates so that the savings are worthwhile. Observing the increase in the amount from month to month will be an excellent motivation to keep setting some money aside.
Banks also offer various ways to save, such as self-saving at the end of transactions. After each purchase paid with a payment card, the bank rounds the amount and transfers the surplus to the customer's personal savings account. The customer does not feel that they are saving daily, and at the end of the day, small amounts add up to considerable sum. It is also a good solution to automate the saving process by setting up a standing order on your bank account. After receiving the payment, the agreed sum is transferred to the client's savings account.
After introducing a few changes in managing one's own funds, it often turns out that money can be found from the household budget for any purpose. It is worth introducing all changes gradually so as not to get discouraged from saving and after a few months or years to enjoy a large amount on your account.