very effective methods to save every month
The strong inflation in Spain in recent months means that six out of 10 Spaniards need to draw on savings to make ends meet. Basic services and the shopping basket have skyrocketed in price, while salaries have not risen. So it’s getting more and more complicated control expenses for save, even small amounts, to be able to go on vacation in summer, buy a car or face any possible extra expenses. but there is saving methods with which we can fill the piggy bank almost without realizing it. Some are these:
365 day challenge or 52 week challenge
This method is based on setting aside several euros each day according to what the instructions indicate. That is to say, on monday we will start saving one euro and we will add another one every day of the week. So in succession and by the time the Sunday we will have to add 7 euros in total to the boat. It lasts for one year. For example, if it starts on January 1, when the challenge ends on December 31, we will have achieved a total of 1,456 euros.
The 50 cent trick
The idea is to contribute 50 cents the first week Let’s start the challenge and increase 50 more cents each week. Therefore, the second will save one euro. Week 52, the last of the year, we must pay 26 euros. If we are constant and we meet the challenge, the total savings will be 689 euros per year.
It is a Japanese method that means ‘“household ledger to encourage savings”. Kakebo is based on write down expenses into four categories differentiated by colors: ‘Survival’, ‘Optional’, ‘Culture’ and ‘Extras’. At the end of the month, the user’s total spending is calculated and analyzed using animated characters: the pig means savings, the wolf means spending. At the end of each week, a reflection block of the passbook encourages savers to check if they are on the right track to meet your monthly goals.
Mike Winters, CNBC financial expert, indicates that the first 20 % that we receive from our payroll must be dedicated to investments, savings or paying off debts and starting an “emergency fund that covers three to six months of your expenses. The remaining 80% should serve for cover monthly expenses, such as rent or bills, but also to pay whims and wishes. The best way to ensure that this technique is carried out correctly is by programming monthly operations to transfer money between two accounts.
72 hour rule
It is simple, but requires great willpower and patience. The key is to think twice about the purchases we make. That is, when we have opted for a product, the Austrian neurologist and psychiatrist Viktor Frankl discovered that waiting up to 72 hours to buy it can make the difference between a stimulus and a response. In his book ‘Man’s Search for Meaning’ he points out that leaving that space allows people to have the power to better choose their response and save.
According to the principles of this method, when a person charges the first payroll and to establish the first savings goals, a good method is to start saving 1% the month. After, month to month, it will be 2%, then 3% and so on until you reach 12% in a year. That money can be deposited in a savings account or even physically in envelopes or classic piggy banks. The most effective way to avoid spending it is to make an automatic transfer each month that payroll is collected.
The millionaire Harv Eker has created a method called ‘the jar system’ with which we can save up to 1,400 euros a year. we have to divide the monthly payroll and Divide it into six different jars: that of needs (55%), that of savings (10%), leisure (10%), education (10%), passive benefit (10%) and solidarity (5)%. If we take a salary of 1,238 euros net per month, a little more than 30 euros a week and 120 euros a month would be used for savings.
This method, which is used especially in the USA, is designed to reduce the time in which we pay a debt and so pay less interest. Snowball consists of dedicating an amount destined to savings each day, which grows over time. If we put as an example that we have a debt of 5,000 euros with a minimum payment of 153.75 euros per month and with 15% interest. According to calculations, it will take three and a half years to pay off the debt and 1,457.50 euros will go in interest. but when saving five euros a week and allocate the extra 20 euros to correct the credit cEach month, the debt will be paid in three years and the interest would be 1,239.38 euros.