Learn how to save money

How to manage better our finances in 8 easy steps!

Saving money is one of those tasks that are easier to say than to do! We all know that it is a smart practice, but many of us still have problems implementing it.
Sometimes the hardest part may be just beginning. Below we will list some simple ways to learn how to set realistic goals, to keep spending under control and get the most benefit from our finances in long term.

1. Write down the costs
The first step to do to manage expenses is to know how much we spend. Get started now! Starting the next first day of the month, for 30 days, every day, logs all outputs. This means that every coffee, every ticket and every snack should be registered. Get used to keep receipts (especially those relating to large purchases). It may be useful to always carry a notebook, or to downloaded an application on your mobile phone that can help you keep track of each output (there are several ones available for free).
Once you have "collected" all charges, you could create a spreadsheet and organize the numbers per category (for example, mortgage, food, restaurants, leisure, etc.). This could be a way to obtain the total amount spent on each item. You can stay shocked from learning how much money you spend on purchases that are far less essential!

2. Set a budget Now that we have a clear idea of what we spend in a month, we can develop a schedule of expenses, set budgets and ensure that we keep some money for the emergencies.
Establishing a limit in spending also means looking for ways to spend less. Remember, small savings can fill the chest! For example, you can try to shop at a cheaper grocery store, buy generic brands, take advantage of public transport for travelling or avoid waste in the kitchen.

3. Schedule savings Considering the month expenses (outputs) and earnings (income), create a category of "Savings" and try to address at least the 10-15% of your income. If the expenses that you face do not let you meet this goal, maybe it could be time to "cut" the unnecessary expenditure (ex. Entertainment, restaurants, cigarettes, etc.).When we perceive our salary we could be tempted by impulse buying. To avoid this, it is recommended to transfer immediately the 10% of the total on a parallel account. This practice can help to avoid unnecessary expenses and to accumulate a good deal of money throughout the years.

4. Establish reasonable goals and define priority Bearing clearly in mind a goal can simplify the saving operation. Set achievable goals and fix a time deadline to reach them can be a great motivational tool.
Short-term goals may be:
• Save money for a vacation or to buy a new car
• Put money aside by changing impractical appliances
• Go seasonal shopping
• Pay debts or taxes
Long-term savings aims can include:
• Have money aside for children's education
• Save money for buying a house
Let’s also remember to define which objectives are more important than others. Each of us has a different way of living, therefore each of us has different priorities. Part of this process is to decide how long you want to wait and which amount allocate to the "Save" fund to reach the goal. Setting priorities is about choices. For example, if we focus on savings to buy a brand new car, all other objectives recede into the background. Are we sure we have made the right decision?

5. Watch your savings grow Check your progress every month. This will help to follow strictly your own savings plan, to identify and solve quickly any problems.
Follow these simple steps and, perhaps, the feeling of security that you will experience when you rely on your savings to deal with emergencies, will inspire you to save more allowing you to reach faster other goals!