How do I save from my salary? 6 guaranteed steps to save on your monthly salary
How do I save money from my monthly salary?
Can I really save a portion of my salary for the future? What is the way to that? Questions on the minds of many who work in jobs with a monthly salary. We often hear people complaining and complaining that their salaries are evaporating and are barely enough for a week or two at most.
What is the reason I wonder? Are they ignorant of the methods of saving and lack the appropriate means to save from their salaries? In fact, such people do not suffer from ignorance or lack of knowledge of these means. Rather, they suffer from financial chaos and the influence of the culture of consumption, and the absence of a culture of saving and rationalization. If we know that the majority of people depend on the monthly salary in managing their life affairs, it becomes necessary to make more effort in order to identify the practical steps that must be followed to save and save part of the salary. We will try to guide you on the path and the steps that will help you to achieve that goal in this interesting and useful article.
How to save a part of your salary in 6 steps
There are 6 sequential steps that can be followed by achieving the desired goal. Economists and finance experts divide these steps into two parts: The theoretical part, which consists of 4 steps. The applied incision consists of two steps. And let’s start with the theoretical part first.
First, the theoretical part:
Before beginning your actual attempts to save from your salary, you have to prepare yourself mentally; By increasing financial awareness, understanding and understanding basic savings concepts, factors affecting managing your expenses, identifying sources of personal income, and developing a personal budget. We will start by talking about the first four steps that prepare you psychologically and broaden your perceptions about saving.
1. Building a culture of rationalizing consumption:
Competition between companies has resulted in unhealthy consumer patterns. Each of them tries to entice consumers with their products and convince them to buy them, which has led to making people fond of consuming at the expense of savings and savings.
If you are serious about seeking to save a part of your salary, you should get rid of repeating some inherited false phrases; Such as “spend what is in the pocket what is in the unseen comes” and “live your day and do not look at tomorrow”. Such statements will control your thoughts and your subconscious mind, will directly reflect on your behavior, and will push you to extravagance in spending.
Therefore, we must stop repeating these phrases and believing them, and replace them with phrases that encourage saving. Such as “On your rug extend your legs” and “Save your white shark for your black day.” After a short time, you will find that your convictions have begun to change, and that you are moving away from extravagance and spending for and without reason, and moving towards abandoning the culture of consumption and replacing it with conscious steps that will achieve a balance between income, spending and saving.
2. spending awareness:
It is known that our needs are diverse. Some are necessary and some are luxury. No human being can dispense with his basic needs such as food, drink, shelter and clothing, and his life cannot be straightforward without them. As for luxuries, they include everything that would make life more comfortable and luxurious, but at the same time losing them does not affect the imbalance or impossibility of life. If you can achieve awareness of the aspects of spending, then you will be able to distinguish between what you really need and what you want. Undoubtedly, what you need is more important than what you desire. Because what you desire you can dispense with if circumstances warrant.
3. Create a culture of savings:
The absence of a savings culture causes many financial problems in individuals’ lives; They turn into mere consumers who spend their income without any planning or management. This may lead them to resort to borrowing from family and friends or participating in an association in order to be able to manage their affairs until the date of receiving the salary. Fedoron in an endless circle.
Read also: The five keys to savings to save and save money successfully
It must be emphasized that the establishment of a culture of rationalization of consumption is a basic requirement that must be fulfilled to build a culture of savings. And saving is not just an aimless accumulation or accumulation of money. It is a planned program that aims to deduct a portion of your monthly salary in order to improve the quality of your life and the lives of your dependents. In conclusion, creating a savings culture will lead to the ability to set a monthly budget that covers all your essential needs and gives you an adequate savings margin.
4. Change the pattern of consumption:
If you want to succeed in saving part of your salary, you must immediately give up some harmful habits, such as: open consumption (spending without justification), bragging and showing off in front of others, trying to keep up with others and compete with them in spending, and unleash access to luxury things at the expense of necessities . You have to live according to your capabilities and be content; Contentment is an indestructible treasure. Finally, if you could change your consumption pattern, you would be surprised by your ability to save money that you would never have thought of saving.
Second, the applied slit:
We have now come to the practical side that will help you organize your finances and reduce financial clutter. If you are able to implement the next steps, you will succeed in controlling your expenditures, distributing your salary to the necessary spending items, and most importantly, you will succeed in saving part of your salary continuously.
5. Salary distribution between items of spending and saving:
For this step, you will need to create a simple budget that has two aspects: first, monthly income, and second, expenses and savings. The elements of spending and savings include:
– Amount allocated to repayment of debts and monthly installments: Start by deducting the value of the monthly installments, so that you do not forget to pay them; Consequently, it incurs more benefits and expenses, which may hinder the success of your financial plan.
Determining the desired amount to save: This comes before expenses, so that you can set broad lines for your expenses during the month. You may have more than one saving goal; Such as if you save in order to buy assets (a car or a house), or for emergencies, or for retirement, or for investment, etc.
Arranging expenditures according to priority: This can be done by preparing lists of monthly expenditures such as: fixed expenses (rent, electricity, communications, water bills and the like), basic variable expenses (food, drinks, transportation, children’s expenses, etc.), and emergency expenditures (doctors’ wages, treatment, breakdowns … etc. ), And additional expenses (trips, entertainment, gifts, etc.).
If you follow this method of distributing your income according to the priorities referred to above, and write down all your expenditures, regardless of their size, then you will discover the amount of waste in your money that could have been saved. And if you stick to this strategy for several months with persistence and perseverance, you will undoubtedly reach a better financial position.
6. Divide the monthly salary:
You have to divide your salary since receiving it at the beginning of the month; Because this will put an end to the financial chaos that you were accustomed to, and it will contribute to meeting all your needs throughout the whole month, and avoid you from falling into the budget deficit, and you will not have to borrow from any source. On top of that, you will be able to save a portion of your salary. We will mention two convenient ways to divide your salary.
– Envelopes method: based on this method, the salary is distributed among the items of spending and savings; Where the amount allocated to each item is placed in a separate envelope, and we do not exceed it to another envelope, whatever the reasons. Thus, you will familiarize yourself with a proper spending pattern, avoiding all unnecessary expenses.
Electronic saving: Thanks to technological development, it has become possible to use modern technology in managing financial affairs. As there are a number of smart applications that help in organizing and controlling our monthly expenditures by keeping all purchases in organized categories and accurately tracking spending methods, bills and installments due. Which facilitates budget control. Regardless of how the salary is distributed over expenditures and needs, the goal should ultimately be to control spending, pay installments and save.
In the end, the issue of saving money is easy when planning and difficult when trying to implement it. Everyone knows that saving money is beneficial in the long run, but many of us have difficulty actually saving money. Therefore, careful and continuous personal financial planning to save and increase your monthly income is one of your most important priorities at this stage.
You can review the Financial Awareness and Increase Income section to get more ideas.
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