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Few people are used to keep money every month to create capital to help them in the future. Either by leading a life full of expense or by ignorance, the truth is that the culture of economy it is not established in society. To change this behavior, we have individualized four tips to create a save the habit.
1. Distinguish necessary expenses from unnecessary expenses
It is extremely important to know the difference between necessary and unnecessary expenses. While the former serve to maintain a decent quality of life, the latter respond only to a short-term impulsive desire.
This does not mean that a person cannot, from time to time, buy an item or consume a service that is not functional just for happiness, but refers to the fact of continually spending money on things. that go beyond personal satisfaction or satisfaction.
same Warren Buffett, one of the richest men on the planet, recommends leading an austere life with as little expense as possible. And he follows his own advice, as he continues to live in his home in Omaha (USA) acquired in 1958 for only $ 31,500.
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2. Create a budget
Make a projection of expenses, considering a possible inflation, and results-based budgeting is one of the best ways to make saving a habit. Fortunately, thanks to advancements in technology, this task can be easily accomplished using a simple spreadsheet.
The key is to write everything down fixed charges, any variable charges and, at this figure, add inflation to it. Then create a budget and, most importantly, follow it in a disciplined manner.
3. Create an exclusive savings account
One of the best ways to save money and avoid the temptation to use your excess money is to create an exclusive bank account for that amount of money. In this way, at the beginning of the month, the remaining savings of the previously created budget are deposited and they are not touched again until the following date.
Clearly, the money saved must be in a hard currency that does not lose value over time, be it the dollar, the euro, the Swiss franc and others.
4. Think long term
This point is critical because most people do not save with the excuse of only living once. However, the chances of staying in this world for several more decades are high, and having money is essential to survive.
If in addition to savings, part of the money is intended for investing, and especially in equity assets Just like stocks, financial success can come closer and closer. The important thing is to remember that save and investing is a way of sacrificing present pleasure to increase future pleasure.
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