Many people have no plan for how to manage their money - they live month to month, spend as much as they earn, but when unexpected expenses arise, problems arise. And precisely because of such fateful moments, it is important to prepare for them in advance. As early as tomorrow, you can start using the methods that will save you without canceling.
Dealing with money management is uncomfortable – feelings of anxiety are familiar to a fair amount of people, and it's even more uncomfortable when you find yourself in financial trouble, which you were not prepared for. What to do?
6 simple savings methods that 100 % work:
The 20/80 method
With this method, you first pay all URGENT bills, credits and other obligations. Divide the rest of the money by saving or investing 20 %, and spend the remaining 80 % as you wish.
The 60/10/10/10/10 method
According to this method, divide the money as follows: 60 % are intended for URGENT expenses, 10 % for saving for old age, 10 % for long-term major purchases, 10 % for infrequent expenses (new computer, refrigerator...) and 10 % for entertainment.
Method 10 %
This method has only one simple rule, which is why it is a little more convincing - only 10 % of income needs to be saved. Because it's so simple, it's also more likely to be used in the long run.
Cash - bank method
Divide the money into two parts (they don't have to be the same). Keep one part in cash, the other part should be in the bank. Use the cash first, and only then start the bank account. This method is effective for those who do not monitor how much money they spend.
The four-envelope method
You pay all URGENT expenses first. Then you save 10 to 20 % for larger or unplanned expenses. Divide the rest of the money into four parts and put them in four envelopes (or divide them into four sub-accounts at the bank). Each envelope is intended for one week of the month.
The method of our grandmothers
This method follows a simple logic - create a separate envelope or savings account for each important expense category (eg food, clothes, medicine, car, entertainment...). Divide the entire income between these categories - if you run out of money in one of the categories, but you still need it, you can take it from the category that is not so urgent.
