2021: 9 Tips to Save & Grow Your Money
Financial experts, whether they are advisors or successful entrepreneurs, do not have magic formulas for success. But there are certain guidelines that they usually have in common. And here are some of these tips for saving.
1) Fool yourself to save
There is a concept called ‘mental accounting’ used by many advisors. It is the mechanism that is activated, almost unconsciously, when we face quantity. We start thinking about how much percent we are going to spend on A, what percentage will go to B…
It is a matter of anticipating our own calculations and always leaving a remainder, a fixed amount or… ‘surprise’. What experts advise is to divert one part to another account or to some financial product. It is a matter of discipline and also of faith in oneself, that we will not regret saving that money. When six months or a year go by we will be surprised to see what we have saved by cheating ourselves.
Another way to cheat ourselves is through responsible use of credit cards. Reduce them to one. You will be able to manage yourself perfectly using a debit card and a credit card.
2) Make money with what you love
Maybe you don’t have dream job, but you surely feel devotion to some sport, a particular hobby… Make it your extra source of income. There are hundreds of examples of how blogging or the Youtube channel can become a considerable source of supplementary income.
So dedicate your time to bring additional income and you will enjoy it much more. In addition to opening up new job opportunities, it will allow you to meet people with whom you share common tastes, and any expenses related to this will be seen as an investment. If you make your passion your business, there will be no stopping you.
3) Save as soon as possible and in small amounts
The best time to start saving was probably years ago, as soon as you signed your first employment contract; even more so, as soon as you had your first paycheck.
The experts advise that we should spend 10% to 20% of our earnings in piggy bank from the moment we have them.
The easiest way to save, besides being a matter of ‘financial education’ passed on from parents to children, is to do it in smaller amount. Setting aside small amount in a week will turn us into savers almost without realizing it. No matter how small the amount you choose to save, it will always be useful tomorrow. The key is to be guided by realistic budgets and savings goals.
4) Automate your way of saving
New technologies can help us to save in a simple and totally intuitive mechanisms: the most useful one, the periodic transfer. If you get paid on day 1, schedule a small transfer the next day to another account intended only for savings. There will come a time when you forget about it, but it will still be done every month, without you even realizing it, and in a year you will be pleasantly surprised.
5) Expand your market
The more they know you, the better and more you will work. In an era where we have such easy access to the web and social networks, apps and websites, we must take advantage of these tools.
Becoming global distributors, not just local or regional, makes us powerful. It increases our potential customers and therefore the opportunities. Let’s never underestimate what the Internet can do for our business.
6) Value the loose change
Spend the small bills in our daily shopping and to leave the spare coins in a separate piggy bank whenever possible.
In a simple way we can collect good amount without realizing it in a month or two. This simple habit can also encourage us to do without credit cards more often, which sometimes make us less aware of the expenses we make.
7) Learn to manage and value the sacrifice involved in saving
Good savers know how to value sacrifice involved in saving: no pain, no gain, as sportsmen say. The watchword is to do more with less, and to be fully aware that we are putting off our rewards.
8) Discipline, discipline, discipline
All these tips to earn money and save have a fundamental value: consistency. By knowing that being unwavering in your purpose you will achieve financial success, both at home and in business. Discipline and self-control will be your best allies when it comes to spending to end up creating wealth.
9) Find out what works for you
The last piece of advice are your strengths and weaknesses. Get to know yourself whether you will be able to make the previous reflections your own, or how to adapt them to your day-to-day life.