15 effective ways to save money

I'll start tomorrow - we promise ourselves every time we decide to do something new, but we don't know where to start, so we keep making excuses about why now is the wrong time. Same with saving - the majority of the population does not save because they think they earn too little and will start when they earn more.

However, it is enough to know a few basic ways of saving to be able to save even for those who think that they earn too little, because saving is always possible, even with a low salary.

Top 3 most effective methods:

1. Plan your expenses - without knowing where you spend your savings, you cannot manage your money, so in most cases, you spend as much as you earn. Therefore, it is important to track your expenses and optimize them, how to do this effectively, read below.

2. Avoid impulse purchases - We often spend our savings on purchases that we don't even need, such purchases not only empty our wallets, but also clutter the house and make us feel bad. One of the main tips to avoid such purchases is to make a shopping list before shopping.

3. 50-30-20 rule - the easiest way to save is to learn how to allocate your funds, the principle is simple - allocate your funds in such a way that you spend 50% of your salary on necessary expenses, 30% on non-essentials, and 20% on savings.

Saving money may seem like a complicated and willpower-intensive process that takes a lot of time, but knowing effective methods of saving and money management makes it easy and simple, and enjoyable.

You don't have to use all 15 savings methods, it's important to find the ones that work for you. We are different and some like to spend more and pamper themselves when visiting stores, while others less so - it is very important to choose at least a few ways that are acceptable and will help you achieve the goal of managing your finances wisely and saving money.

Each of the methods listed below will make it easier for you to understand the intricacies of saving, and you can decide for yourself which method will bring you the most benefit. It is important to remember that at first, until you are in the habit of saving and committing and distributing your savings, it may not be easy to start and maintain the motivation to save money, but having a goal and reminding yourself of it will make it easier to do it.

So how do you save money? Where to start a money-saving plan?

1. Set a goal for which you are saving

This is one of the most important tips to effectively save your savings and not live paycheck to paycheck. Everyone has bad days when they lose motivation and want to pamper themselves, so in such moments, without a goal, it is very easy to slip up and buy things that we don't even need. Having a savings goal in mind helps to avoid this, which motivates us to manage our savings wisely. This goal can be very individual and different, one can save for a new car or apartment loan, maybe for a longer trip to an exotic country, for example, when traveling to New Zealand, a one-way flight alone can cost you 1000 euros. Others may save for a child's education or a dignified retirement - all the goals you desire are valid, it's important not to forget them and always remind yourself of them.

2. Track your expenses/expense tracking

After setting a goal, it is very important to understand what situation you are in at the moment, and where you spend the money you earn because only by knowing this you will be able to optimize your expenses and spend less on unnecessary things or services. It is recommended to track your expenses every month, dividing your expenses into different categories, some examples could be transport, food, utilities, etc. By knowing where you spend, you can think about how to reduce your expenses, perhaps eating out less often in cafes and restaurants, and choosing to cook at home more often.

3. 50 – 30 -20 rule

Once you know where you spend your money, make sure your spending follows the 50-30-20 rule. The question is, what do these numbers mean? 50 percent You should spend your salary on essential expenses that you must take care of, such as food, housing, taxes, and transportation. Accordingly, allocate 30% of your salary to variable/unnecessary expenses that you could live without, but which provide comfort to life and allow you to pamper yourself - for various events, entertainment, clothes, and shoes. Spend the remaining 20% of your salary on saving and investing. This saved money will be available when you need it the most, in other words, you are saving for a bad day. This rule allows you to allocate your salary to your most important needs, but it should be used wisely - if you earn less, then you may not be able to spend 30% of your salary on non-essential expenses, and you will spend more on necessities, and if you earn more, then you can pay more

amount of money to be allocated to savings, not a small part of those who use this rule also set aside part of their funds for investments, so everyone can adapt this rule according to themselves and thus manage their savings effectively.

4. Avoid impulse purchases - think about your purchases in advance

If you are used to spending more, it can be difficult to follow the rule described above, but the easiest way to reduce your spending is to give up impulse purchases. This will help you make a shopping list, which we recommend making every time before going to the supermarket, such preparation will help you not to buy products that you already have in your refrigerator and will help you avoid unplanned purchases. Also, don't go to the store when you're hungry, because when we're hungry, we think we want everything and buy snacks that not only keep us from eating but also make our wallets thinner.

5. 24-hour rule

This rule is for larger purchases that are often not necessary for us, but we really want them at this moment. For these purchases, we could include clothes, leisure equipment, and other goods, the demand for which is formed by advertisements seen on the Internet. This rule recommends waiting 24 hours before buying a product whose price exceeds 100 euros. And if after a day you still need this product and want to buy it, then you really need this product and you can buy it without any remorse. This rule helps to assess whether the desired item is really necessary for us.

6. Compare prices

Different supermarkets apply different promotions and costs to their customers, so before shopping in supermarkets, we recommend comparing prices and assessing in which store you can buy the same goods at a more affordable price, and if you live near several stores, you can buy the necessary goods from different stores centers where the biggest discounts and lowest prices are offered.

7. Give up expensive, harmful habits

Not only do we spend a lot on shopping, but we also have very expensive habits that can help us save a significant amount of money by giving up. One of the most expensive habits that harm not only health but also the wallet are smoking and alcohol consumption because people who use these habits can spend up to several hundred euros per month.

8. Cancel subscriptions you don't use

Are you really using all the subscriptions you've purchased? It can be a news subscription, television, sports club, etc. Make sure you use these subscriptions, and if you don't, cancel them, because it can help you save dozens of euros.

9. Give up consumer loans

By giving up unnecessary expenses, you will not have to take out consumer loans, which not only do not help you save in the long term, but also cost you extra, and if you have a consumer loan, try to pay it back as soon as possible, because the high interest you pay for them eats up your savings.

10. Reduce the taxes you pay

Look at your bills and the taxes you pay - it might be worth investing in home renovations to pay less in winter, you can also reduce your water bills by choosing a shower instead of a bath, and changing the light bulbs in your home to LEDs will save you electricity costs. which, as we have seen, can be even very large.

11. Refuse additional services - do it yourself

Evaluate what services you use, maybe you could do some of them yourself. You can learn how to change your oil, paint the walls of your apartment, polish your nails, and much more, which will allow you to reduce costs and save more.

12. Make extra money by selling unwanted items

You can save not only by reducing your expenses but also by earning more or extra, so take a look at your things and those that you will no longer use - sell them, this will allow you to earn extra.

13. Earn for keeping money

Do not keep money in a bank account, it is better to keep free funds in a deposit and get additional interest for keeping money. This kind of money storage is safe and risk-free because all deposits in Lithuania are up to 100,000 euros. are insured. Interest rates vary, but you can expect to get 4% interest for keeping money on a deposit

14. Rent out an unnecessary room or room

Perhaps you have a room in your apartment or house that you are not using? Rent it out long or short-term, it will allow you to make extra money from the space that you are not using in one way or another. By hiring a room in this way, you can earn even several hundred euros per month.

15. Invest free funds

If you don't want to work actively but want to earn more, choose an investment that will increase your savings passively. One way to invest is by investing in real estate loans, where you lend your savings against real estate.

for property developers who develop real estate objects. In this way, it is possible to earn more than 10% annual interest per year on average. You can find out how much you would earn in a year with our free investment calculator.

How long to save money?

How long you need to save depends on your goal, maybe a month to save for a bike, maybe a year or two to get a mortgage, but usually saving is long-term and you need to prepare to save for a year or more.

What to do if you are not immediately successful in following the savings plan?

We learn from mistakes, so if you don't succeed right away - don't get upset, analyze where you didn't succeed, remember the goal for which you started saving, and try again, most importantly don't repeat the same mistake, and don't give up.

In short - saving is easy enough when the basic rules of saving are known, so we hope that these tips will help you achieve your financial goals and allow you to be wise with your salary, because how we treat our finances depends only on us, and learning about saving is not either too early or too late - with the help of parents, it can be done while still in kindergarten and after retirement, the most important thing is that we have a goal for what we are doing.