The beginning of the year is a time when many of us plan for change. Some promise to get in shape at the gym, others plan to change jobs or be more disciplined in their personal finances. After the December madness of gifts and New Year's parties, many people come to the conclusion that… It's time to finally start saving.
Saving is a key element of financial stability and independence. However, as in many other areas, effectiveness in this area requires a specific goal. This can range from meeting short-term needs, such as a vacation or buying new equipment, to long-term needs, such as retirement or buying a home. It is important that the goals are realistic and adjusted to our capabilities. However, efficiency in this area can be increased. How?
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Effective savings. Technology can help
You have to start From a reliable assessment of your financial situation. This primarily includes an analysis of monthly income and savings costs. Experts also point out that it is also necessary to recognize the differences between needs and wants. From the beginning, we have to decide what expenses we are ready for.
It is difficult to start saving effectively without what is called effective management of personal finances. It will be impossible without it Create your own budget. It allows you to control your expenses, increase your financial awareness and helps you achieve your goals.
There are many methods that will allow us to actually save money. One of the most popular is the division of income into envelopes, cans and boxes. In most cases, the 50/30/20 rule applies. according to him 50 percent of income should be allocated to necessary expenses (housing, taxes, food), 30 percent for personal expenses (entertainment, hobbies) and 20 percent for savings. It is important to adapt these proportions to your individual financial situation.
Of course, we don't have to use the “analog” method of dividing cash – In the era of digital money, our smartphone will be an excellent assistant. In particular, there are many applications that allow you to control your expenses. They allow you to easily track your cash flow, set budgets in categories and track your progress towards your financial goals.
Many solutions can be mentioned here. Mint is a free budgeting app that lets you manage all your finances in one place. You can connect your bank accounts, credit cards and investment portfolio in the app. Spend In turn, this allows for easy visualization of costs. Mr. Paragon Allows you to scan store receipts and thus control your expenses.
Buy only what you really want
There are also solutions that allow you to save by finding certain items for less. A good example is service Pepper, which is a kind of social network where opportunities appear from various stores and shopping platforms. Deals are updated literally every few minutes.
The app will also work great ok. Here you will find current discount codes, promotional brochures and cashback offers, thanks to which some money is returned to us. There is also information about sales and promotions.
“Manual” and digital tools are the same purpose. They allow you to respond to changing life circumstances, such as a change in work or marital status. We will not have to solve anything once and for all. Circumstances may require you to update your budget. It is only worth keeping your finger on the pulse and thinking seriously about personal finances.
– Online shopping with discount codes, sales and, of course, cashback, allows you to save up to several tens of percent on each purchase.. The Goodie platform offers all these products, and their popularity is proven by the fact that Goodie has already charged its customers PLN 50 million in cashback for online purchases. It is important that the cashback is combined with codes and discounts on Goodie, so you can get twice as much – explains Boleslaw Witkowski, head of products at Bank Millennium.
Cashback is very easy to use. A customer finds a feature or brand they are interested in on Goodie and then goes to the selected store by clicking the “Go to store” button.. Then all you have to do is shop as usual. The user will immediately see the discounts in his cart in the online store. In turn, cashback is allocated after purchase – the user will see it in his Goodie account and at least after collection. 21 PLN will be able to withdraw money to any bank account – he adds.
Plan your expenses more consciously
Saving and consciously buying what you really want may not be easy because it requires discipline. What helps you control your finances? Understanding how emotions influence purchasing decisions can help you control them.
A simple example is the technique of waiting 24 hours before making a major purchase. It can reduce impulsivity and the ability to make thoughtful decisions. By following this simple rule, we can save a lot of money every month – who do not impulsively buy shoes, gadgets or cosmetics that are not necessary. This does not mean that we should give up websites or apps that allow us to receive discounts, cashback or other benefits. However, we can make these types of purchases more consciously.
Saving money also requires knowing the pitfalls of trading. Marketing and advertising often influence our decisions. This does not mean that buying advertised and advertised goods and services is bad. It is better to approach this type of issue calmly. Then we will have a greater chance to buy what we really want. and with a favorable offer.
Daily savings. Find money for bigger expenses
Apps like Goodie will be easier to use if we find savings in everyday expenses. To this end, it is worth looking for savings in every possible way. You can start by spending more consciously.
How to follow your plan every day? Preparing a list of necessary purchases and sticking to it can significantly reduce unplanned expenses. Comparing prices, searching for better offers, using price comparison websites or advertising aggregates can bring significant savings.
Don't be afraid to invest
Saving should not be limited to just putting money in a savings account or a drawer. Investing is an important part of building wealth. The main, even traditional, investment options are stocks. Investing in company shares can bring high returns, but involves greater risk. Bonds are a safer option than stocks, offering steady income in the form of interest. Investment funds, on the other hand, allow diversification of investments. They are often run by professionals.
If we talk about personal finances, we must remember what will happen in the more distant future. Saving for retirement is one of the most important aspects of financial planning. The sooner we start saving for retirement, the better.
Use your money more wisely. Thanks to technology
The development of financial technology (FinTech) has revolutionized the way we manage our money. Using personal finance management apps like Mint, YNAB, or Personal Capital can help you monitor expenses, budget, and plan your investments. Using coupon and discount apps like Pepper or Good Stuff can be a way to spend money more wisely. It is worth using this opportunity and skillfully saving will leave more money in our wallet for what we really want.
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