Saving has become increasingly difficult! In particular, for the ‘thousand dollar generation’ being able to set aside money, whether they are to pay the car installments, to afford a two-room apartment for rent or even just to take a week’s holiday at the hotel, now looks like a company.
But there is a way to indulge in certain ‘luxuries’: obviously it is a question of cutting costs. Easy to say, hard to do. But not impossible.
How much and how much to save on salary per month? Here are some tips to better manage your salary, so you can get more money into the bank at the end of the month, all without giving up what we really need and the small pleasures of life.
How to manage the salary and manage to save money every month?
1 – Never lose control:
Many times, in our purchases, others, due to a sort of social pressure, influence us: buying a certain model of shoes because they are fashionable or a new 65-inch TV because now all our friends have it is not wise. It is only the desire not to be left behind or, in some way, fear of being excluded from the mass. Reasons that are superfluous when savings are at stake: whenever you are about to decide to spend money, ask yourself if you are doing it to adapt to an imposed standard. If the answer is yes, you can very well give up buying.
2 – Try to recognize expenses:
Unfortunately, some of them are inevitable: just think of electricity and gas bills, rent and grocery shopping. However, it is undeniable that there are several that can be identified as expendable: just think of a dinner at the restaurant or breakfast at the bar. These are gratifications, of course, but you really can’t do without eating out twice a week and starting every day with a croissant and cappuccino at the counter? Obviously the answer is no. Just think of a single coffee: one dollar a day, which become 365 in a year. Almost as much as the cost of a return flight to New York.
3 – Set yourself a goal and put the money aside immediately:
The easiest way to save money is to create a kind of background and not touch it. Simple in theory, less in practice. We need a motivation, like a figure to reach. For example, if you want to go on vacation on the Red Sea, set a budget for the journey that is higher than what is really needed and make a commitment to save money until you reach this figure: once you hit the target, you can actually give yourself the vacation of your dreams and, in addition, you will have put aside even a small additional treasure, without even realizing it.
4 – Think in working hours:
Each time you are about to make a purchase, take the item amount and turn it into the hours you spent to earn that amount. A pair of 80 dollar shoes, for a person who earns 1200 dollars a month (and it doesn’t happen to everyone), is equivalent to more than a day’s work. This applies to every purchase, even the ‘minor’ and non-material ones like a movie ticket. Are you sure, you want to ‘burn’ the money you sweated in that hour and a half of work in an hour and a half of film? Always ask yourself, in short, if it’s worth it.
5 – Learn to distinguish between price and value:
Sometimes to save something you have to spend a bit more. Buying an inexpensive coat may seem like a bargain at the moment, but in reality it turns out to be counterproductive in the long run, because compared to a higher quality (and cost) product it will spoil sooner and you will be forced to go shopping again short times. It is an advice that applies to clothing, but also to electronic products, pieces of furniture, appliances and even cars: where the price is higher, there is often really (added) value. Consequently savings.
With these five simple tips, we found an answer to ‘how’ money can be set aside. Another question remains: how much to save on salary a month? Ideally, the amount we receive for our work should be set at 50% for fixed costs (rent, bills and installments), 30% for variable expenses (clothes, travel, food), with a remainder for equal savings at 20%.