Money is not enough! It Disappears just somewhere! I don’t know where I put it. Oh, again, I don’t have money. Those all sayings say a lot of from us. Many people want to save money, but somehow it doesn’t happen. We can save money and it is not hard, just need to make some preparation, put some work before that, and it should be long time action.
Start budget planning
To see where you can save money theoretically, you should make a record on what you have (or what you earn) and what expenses you have. It can be called budget. You can make household budget, family budget or simply individual budget.
Use a list, use excel or there are a lot of free and also not free sources where to make budget planning, there are free budget planning forms, you can find budgeting planning software. Even you internet bank should have tool, which they offer to use by free. You can use also apps on your phone. To be honest, it doesn’t make sense, where are you doing that, the most important is that you do that. And you use that option, which suits to you and your needs.
I am making records in excel, but this month also want to check mobile apps for that.
What do I add into records? First of all, I make a planning in the beginning of each month. I put 2 columns- plan and actual, I have difference counting as well. Usually I make a plan till end of the year, with correction possibility. Basically you know on which month you will have what expenses (not all month you have big car expenses, or you know when you plan to make presents to your friends and relatives. But I also have “unexpected expenses” and “other” which helps me feel in all. I add also incomes (planned and actual), and count what should I have in the end, and also record real numbers.
This is how looks my part per each month.
How does this help me to save money?
When you record your incomes and expenses, you can see situation what do you have left. Also, when you put planned numbers (they need to be real, based on experience -if you don’t know, you will, after some month doing this planning), you can see what you spend, and see where could you reduce expenses or put something on hold.
Simply exercise to do
It doesn’t have to be beginning of month to start. You can start when you want. Put into number of total money you have, and what you need to make with it till next check.
-> Please put on table all your expenses.
-> See, are they exceed your current money.
-> If Yes, supper! If you have something left -> put it as saving already now, and follow the list of expenses you made
-> If Not, it’s sad, but don’t be in panic. Take a look one more time. Choose the most important ones, which you can’t take off, choose those which you want to have, but you can survive without those things -> MAKE A SAVING ON THEM. For instance – you mentioned that you need to go to solarium, buy new book, go out with friends, don’t do it, till your financial situation will be better. I know it is hard to change what you used to do all the time without any pressure. But when you start, it gets easier day to day.
-> So, you should end up with at least 0 (incomes-expenses).
=> If you can’t do it this month-> try to reduce – each month to finish with 0, but I am sure, you can do it already this month! (be critical to yourself! you deserve live in + budget! but to make it you need a work a bit!) OK, if you see that you cant be in 0 or + balance this month, stop have minus – balance. If it is not possible, in one month, make a plan and get out from minuses within 3 month, or 6 month or how much time you need. But DO IT!
Planning shows you ALL
When you start to plan your budget, you find out where the money is going out, but planning is not enough- you need to record also actual. When you start to record your budget, you become more responsible for your money, you start to understand where it goes, and where can you affect situation.
Plan your expenses longterm
When you want to buy something, before do that, make a saving for that.
For instance, you know that in august you want to have a big birthday party. the cost for that could be 1/4 or even 1/3 of your salary. Start to save money already now! Put money for that already now, and when august will come, it wont be so painful. You want to buy new TV. If you buy it now, you will get “-” balance and will use credit card, you will pay percentage for that, or you can use leasing to buy it if you don’t have credit card, or you can ask someone to borrow you money. Instead of that you can put 100 $ each month and get money in 6 month for TV. What is good in this situation, in half a year you will be able to buy that you want, end most probably for better price, you could do that half a year ago, or you can buy better one for the same price (new model). Sounds easy and logical? IT DEFINITELY IS! just start to do that-> change your life and make it better, and free from dependency of money.
You want to be save money from unexpected situations like broken phone, broken TV, unexpected car maintenance? Make a font for unexpected situations.-> put each month there curtain amount of money. If something happens-> use it, if not you will have extra saving.
If you plan to take a leasing for car (for instance) -> start already train yourself leave without that money – put on saving account for instance 150 EUR already not- first of all you will get saving for first loan payment, second thing, you will get use to live without that amount of money.
Be prepared for everything
+ Add to your planning column “others” or “unexpected” – this will prevent you a bit from unexpected changes in your expenses or that is great place where you can find your savings. Not always things go by plan – prepare you “plan”also for that.
+ When you plan how much could you save money per month, per quarter, per half a year, it becomes more real, you have better motivation, and you can start to plan what to do with your savings. Do it -> as I wrote already before. Savings must have target where they will go. For each saving money you make, you need to set up a goal.
+ When you see your real situation on paper (on computer or your phone) you start to thing more realistic and wishes like “I just want” you can think true one more time. For instance, I want new dress, new shoes (I have already 50 pairs, but I would like to have 51st – OK, if You have enough money – everything is super, but if you are tough on budget, maybe you can survive without that pair?), You go out each Friday and Saturday, and spend 60 $ minimum. OK if you have enough money for that, but if there comes out gap, maybe you could reduce it and go out 1x per week?
+ When you plan your budget, you start to think true what is important and what is not, you become more responsible for your money, and also you start to work with it not for it.
Some practical things
YOU need spend some time to make a records – make it as routine, for instance every evening, after dinner, make all day records for this day – make it as daily thing.
In the beginning you will forget to make it for some days, or will forget your expenses.
Make payments using your card not cash. if you use cash – make a small note and keep it in your bad or wallet – amount and what for. then, when you will make a records, you will have all data.
If you have to save money for something important to you, take that money to another account, take it out and put on sock, give to your friend, with who is agreed that he won’t give it back to you no meatier what you will say, in the beginning, not end (when you get your salary, not in the end of month)- this will secure that amount of money. Make that money untouchable.
Is it obligatory to record your budget? Of course not, it is your free choice, but I mentioned a lot of advantages you will get from that.
If you start to plan your budget, money becomes real, your savings become real and if you spend more than planned, it feels like lost for real. It is not just “that happened” you will feel real lost -as you waste money.
Do you plan your budget? how it goes? What way you use for planning? Is it help you?
share it in comment bellow
I hope this article will help you change your life a bit on a better side. if you want to read more, HERE is one more post regarding real ways to save.