3 Effective Money Saving Strategies. Simple Rules For Achieving Goals

All people periodically experience the desire to save up money to buy an apartment, a house or a car, a tourist trip or to fulfil their dreams. To make the dream come true, certain steps must be taken. First of all, it is important to choose the right money saving strategy. Everyone can live without debts and fulfill their dreams, but it is subject to a responsible attitude to income and expenses, to planning a personal budget.

Nowadays, financial literacy is a necessary condition for success in the present and prosperity in the future. Everyone can independently save up the amount necessary to implement his plans, whether it’s buying a house, starting his own business, investing without the help of relatives or friends. The choice of an effective strategy for the accumulation of funds allows to distribute earned money in the most rational way and to spend it with the maximum efficiency. The basis of any of the existing strategies are:

• competent choice of a source of stable income;
• use of effective saving methods;
• use of effective ways to minimize expanses;
• use of opportunities for profit from additional sources of income.

Like with any other project, certain rules should be followed while accumulating money.

Rules for the accumulation of money

There are several rules that should be followed by those who want to save money. The first and main rule: first of all, you need to pay yourself. After receiving a salary, the amount should be divided into 3 parts: the first part must be saved for the essential expenses, the second will go “to the piggy bank", and the third will be kept for expenses. This rule must be strictly followed. You can fulfill the rule by laying out money on envelopes or by opening a bank account.

The second rule: you must keep home accounting and analyze the budget. To do this, you can use a notebook and a pen or an online personal budgeting service.

The third rule: you must analyze your financial habits and abandon inappropriate expenses.

The fourth rule: you must plan your expenses using opportunities to reduce costs. To do so you can use seasonal discounts, pre orders, reservation services, etc. Proper planning of a personal budget will allow you to get the necessary amount quickly.

The fifth rule: you must find the opportunity to increase the accumulated funds.

Effective strategies for accumulating financial funds

There are many strategies for the accumulation of money. They vary in degrees of effectiveness and are designed for different periods of implementation. The most effective strategies include:

• monthly increase in the percentage of savings from 15% to + N%. The strategy allows, by increasing monthly the percentage of deferred savings by a small amount (1% or more), in a fairly short time significantly increase the size of savings;
• 50-70% of each received amount is added to the existing fixed or interest rate of savings. When choosing such strategy, additional motivation to increase wages is triggered, which means showing activity at work in order to increase the amount of payment, searching for another place of work with a higher salary or an additional source of income;
• a strategy involving putting aside financial resources received for a part-time job in a piggy bank. This strategy stimulates the search for additional sources of income. It is especially good, because in many cases the payment for a part-time job is in several times higher than the payment received at the main place of work.

Simple strategies include:

• putting aside 10-15% from each receipt of money. The method is designed for several years and is suitable for those who regularly save money. A convenient way to implement the strategy is to open a bank account with favorable interest;
• no restrictions on the amount of the saved amount. Not in all cases you must strictly stick to the established limit of 10-30%. If you manage to save more money or get a bigger salary, it will be more rational to put aside a larger amount in the “piggy bank”, which will allow you to achieve your goal in a shorter period.

When choosing one of the strategies and following the rules, any person can collect the necessary amount of money over time. If needed, you can make adjustments to the strategy or create your own strategy. The key to the implementation of the plan is determination, self-confidence and the systematic implementation of your own plans.

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