How to save

An important requirement in the handling of the personal finances is to have the discipline to save, that is to say, to have the discipline to reserve a part of the obtained income of money, and to keep them for a later use.

Acquiring the custom to save will allow us to have the knowledge security that we have money with which we can respond before any emergencia or unforeseen circumstance; it will allow us to join money soon to be able to invest it and thus to obtain new sources of income, for example, when acquiring businesses or investments; and also it will allow us to join money soon to be pleasant some to us that allows us to improve our quality of life, for example, when buying a new automobile, or when going to us of trip.

We see next a method made up of 5 steps that will help us to save:

1. To make a picture of income and debits

In the first place we must make a picture with the games that generate income to us and those that generate debits to us, as well as the monthly amount that to us usually generates each game.

Games that generate income to us could be the games use, businesses, investments; and the games that generate debits to us could be the games feeding, education, clothes, entertainment, mobility, services, debts.

For example, in the game “businesses” we could have habitual income of of 5000 to the month, and in the game “education” we could have habitual expenses of 1000 to the month.

In this picture we must include all the games that generate income and debits to us, and must try to be rightest possible with the amount that we are going to assign to him each.

2. To identify the games in which expenses can be reduced

Once we have made our habitual picture of income and debits, we happened to analyze it and to identify the games in which we could reduce expenses or, in any case, the games in which we could stop spending.

In order to identify these games, we must look for those aspects in which somehow we could reduce expenses, rendering special attention to those in which we are spending too much.

For example, we could notice that we are spending much when eating outside, and that we could reduce to expenses in the game “feeding” when eating more in house; we could notice that we are spending much in subscriptions to magazines that not always we read, and that we could reduce to expenses in the game “entertainment” when cancelling these subscriptions; or we could notice that we are spending much in electricity, and that we could reduce to expenses in the game “services” when consuming less energy.

3. To elaborate a budget

On the basis of the previous steps we happened to elaborate a monthly budget where we indicated the games that will generate income to us and those that will generate debits to us, as well as the amounts that we have projected that will generate each to us.

For example, if in the game “education” we used to spend 1000, but we have not found some form to reduce to expenses in her, then our projection for the game “education” will be also of 1000.

But, for example, in the game “entertainment” we used to spend 800, with the analysis that we have realized in the previous point, we could determine that from now on we will only spend 700, that is to say, our projection for the game “entertainment” will be of of 700.

In this budget we must also determine the total of all the projected income and the one of all the projected debits; and soon in the part inferior of the budget to determine the difference between these.

A model of this one type of we can find it budget in the article how to elaborate a familiar budget.

4. To determine an amount destined to the saving

Once we have elaborated our budget, we happened to determine an amount that we are going to save every month.

This amount destined to the saving would have to correspond to the balance of the budget, that is to say, the difference between the total of the income and the total of the debits.

If we considered that this balance is not an suitable amount to save, we must reconsider our budget, and evaluate if we could still more reduce the expenses in some games or, in any case, if we can find new forms to obtain more income.

The recommendable thing is that this amount of saving represents like minimum 10% of the total income.

5. To adjust to the budget

And, finally, once elaborated our budget, and determined the amount that we are going to save every month, we must put in practice the planned thing.

We must have sufficient discipline like fitting us to the budget, and thus to obtain always the same amount that we have determined as saving.

Nevertheless, it is probable that sometimes we do not get to follow our budget exactly, but what yes always we must fulfill, is with reserving and keeping, passes what happens, the same amount that we have determined as saving.

On the other hand, our budget must be flexible, and is possible that we realize some adjustments to him in case of being necessary, but always trying that the realized changes must as objective increase the amount destined to the saving.

We always must always try that this amount is increasing, looking for new forms to generate majors income, new forms to save or to consume less, avoiding to contract new debts, etc.

And, finally, he is recommendable that we deposit this amount in an account of savings in the bank, we have so that it in a safe place, we do not feel attemped to remove money from her and, of step, we pruned to gain some interests.