Saving is a financial goal that people can be at any time of his life. The advantage of those who do at an early age is that they gain experience over the years and through different methods that can test in order to improve and make it more useful for your finances.
Many people complain because their low income, may not have the ability to save, but the truth is that all people are in the same conditions, no matter what the number of trailing zeros in your monthly payment, all it is a matter of budget and mentality, ignoring that reaches a certain percentage of your salary and must go directly to the ” little pig”.
But once you manage to change the mindset and perception about saving, it will become a habit as common in your life, like brushing your teeth or iron your clothes. Of course, keep in mind that each person has their own techniques and not for everyone serves to cut costs, because there are others who prefer is to earn more.
However, they can be some guidelines that are not very healthy and, although it may serve some are not quite convenient when you want implemented ‘chip’ savings. So, consider this list that Money Sense and BankRate say about the most common mistakes that can be made:
Save 10% when debts spends 20%
While you may have the perception that is actually doing something, the truth is you’re getting your money in pockets broken. Even though you have debt, you should always leave room to consider savings as an important part of your budget, setting priorities.
But when your debts are so high, you must set a strategy that allows you to better manage your money because what happens is that while you can get a yield below 10% with their savings (if you have an account or any banking product), is paying more than 20% in interest on debts owed, which obviously is not good business.
Consider making a plan to get out quickly these debts, even if you have to sacrifice saving a few months because failure to do so, your strategy will never work and feel that saving is not worth it.
Save a lot, for a long time
If you are of those people who also end up obsessed with save, save and save, without clear horizon but simply accumulating money, keep in mind that the only winners are the banks where you keep it (if it does so because, otherwise, it’s worse! When you make your money loses value). Remember that once you have a sufficient amount of money to invest, you should put that money to work, so that you make more profits and make worth saving.
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In this it is also important that you know why save: have an emergency fund for the next year’s vacation or to afford to go shopping one day and change your closet. When you have clear goals, saving becomes a challenge that brings an implicit reward.
Save money where no income
Whether under your mattress or in the same savings account where you consign wages, you must understand that there is no use accumulate and accumulate a pile of papers in a place where it is not generating profits. Remember that today there is a wide variety of products both in banks and cooperatives or employee funds , where you can leave your money knowing that this will generate some additional revenue.
Of course, we know that with $ 20,000 or $ 30,000 may not find any appropriate; but once you have savings of over $ 150,000 should consider moving money. There are even options that you can make transfers or that are not tied to specific amounts but you can make contributions whenever they like.
Saving is a task of searching and research. Nobody said it would be easy. But if you really want it worth doing, find out the options available to them and analyze the most convenient.
All eggs in one basket
Not all of your savings should be in one place. If so and you get to present an unexpected situation, you can have greater losses. Consider the need to create several ‘compartments’ savings, allowing you to identify what the purpose of each. It is always good to leave one that is not going to play ‘for nothing’ (long-term goals, such as vacation or shopping); another, which you can access if there is an emergency and one last desirable in cash, although the amounts should not be very high.
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When you diversify your savings, better understand the dynamics of money and will be able to act more wisely when it comes to managing money.
If you are of waiting for the “right time” to start saving, there is something you are doing wrong. This may never be present and develop the mentality that saving is to begin to assimilate with a status of power, in which the money is who controls what you and not you the money.
Then whenever postpone saving or not it’s something that makes relatively constant, you are training your brain to not see the issue as a habit but as a possibility when ‘you can’. And the more we adjourn; it could be more difficult to change that perception and begin to adopt the habit.
Be tempted by spending
It is one of the most common. Whether for a concert, a trip or because you definitely need to buy new clothes or a pair of shoes, knowing you have money available always generates the temptation to use it. The most common is that people kid themselves by saying “then get well” but in most cases this does not happen.
So if you are aware that you can get to fall into such traps, it can be important that you have your money on products that prevent you from taking the money at any time or having to remove specific conditions.