5 effective ways to save money

Saving money is never a simple thing, it can even be frustrating for many people.

However, it is essential to help ensure you stay on top of your finances. According to financial experts, there are 5 ways for you to save money practical and effective.

Illustration: 123FR

5 minute rule

One cause of overspending is impulsive spending. Therefore, if you reduce your spending decisions, you will find yourself saving more money.

To reduce impulsivity, you should apply the 5-minute rule. Give yourself 5 minutes to consider, ask yourself whether you should buy something. You should also leave the store (including the online store) for those 5 minutes to clear your mind.

The one-for-one rule

This minimalist rule is very useful, if you want to save money. As the rule’s name implies, every time you buy a new item, you have to get rid of a similar old item. For example, if you want to buy the latest iPhone, you have to sell off your old iPhone. This rule can save you money by preventing you from buying something new or recoup some of the cost of something you just bought.

Transfer money to another account

The best way to accumulate savings is to have more than one bank account, one for everyday transactions and one for long-term savings. It is recommended that you automatically transfer a fixed monthly amount to a savings account.

You can spend and save according to a basic 50-30-20 rule: Spend 50% of your income on necessities and necessities, 30% on personal needs and the last 20% left over. back to save.

Track your spending

There are now countless user-friendly, easy-to-use spending tracking apps that you can download to effectively manage your finances. By tracking your spending, you can save more.

According to financial experts, you should set a specific budget for each category. For example, if you think you’re overspending on entertainment, try setting a lower budget for that item.

Check the service packages you subscribe to

Once a year, you need to try to calculate the total cost of all your monthly subscriptions, from mobile plans to Netflix plans, gym packages…you’ll be surprised at how much you spend monthly .

If you find the packages you’re using okay, that’s great. However, on the contrary, if you find yourself wasting money because you do not use all the features of the service, you should adjust and buy packages that are updated with promotions to help you save more effectively.

Thuy Linh (According to Wonderwall)


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