What are your financial goals? Living in your own home with your happy family? Travel the world? Do you want to start your own business? The way to reach your financial goal is to make savings into a habit. Let’s examine the ways to make savings every month step by step.
Step 1: Develop Accumulation Goals and Methods
Your first step is to set a savings goal. If you have multiple financial goals, prioritize for you in order of importance and urgency. Naming your goals makes them more real. For example, if you are aiming to save up for your children’s education, you can call it ‘Safe future’. How much money should you save for your goal? How long can you save this money? Think, plan.
Step 2: Make a Budget
Start making a monthly budget and stick to it. In this way, you can transfer the money you save in your budget directly to your savings account. Here is a budget example for you. It’s time to start budgeting regularly.
The 50/30/20 Rule:
Divide your income into three spending categories: According to this method; 50 percent of your income will go to your basic expenses, 20 percent to financial goals and 30 percent to your willing expenses.
Step 3: Accumulate In A Separate Account
Keep your savings for your financial goal in a separate account. As you receive your income every month, transfer it to that account automatically and regularly and do not touch that money.
Step 4: Automatic Accounts
Take advantage of the possibilities of technology. Automate your bill and debt payments and savings. In this way, you will not neglect your payments, preventing your credit rating from falling, and you will continue to save with determination.