The concept of saving money from salary is usually associated with deprivation, because it entails reducing expenses in several ways, but in reality one does not necessarily deprive himself in order to save money, but he must try to spend money in the right place and avoid additional or luxury expenses.
in order to secure a small amount to save it, as saving money provides its owner with the necessary money when needed, whether for education or buying a house, or for retirement and emergencies, and to learn about ways to save money from salary without feeling deprived, we will review the most important of them during this article.
Why should you save from your income?
People do not know the unseen, as a sudden economic crisis may come soon, or someone in the family will become ill, or you may feel the necessary need for a household equipment such as a refrigerator, oven, or anything else.
In fact, this is not the only and most important reason for savings, as people with long-term visions often resort to it. By envisioning savings as a step for a higher and larger project.
- Savings is a wonderful refuge from adversity.
- Savings is a long-term vision.
- Savings is a culture of not overspending.
- Divide the funds in an appropriate manner.
Spending varies according to salary
The income of people who spend a lot will not inevitably be saved, even if it is huge.
You may find the opposite of the situation in other people, the difference here lies in the wrong mentality that these individuals have.
And since they are excessive consumers, it is inevitable that financial problems will rise to the surface sooner or later, such as:
- Debt.
- Irrational consumption.
- Not taking advantage of the collectibles.
- extravagance.
Saving money from salary
The most prominent ways to save from your salary without feeling deprived
Whether you have a low, medium or high income, there are always ways in which you can save money, and the following are the most prominent of these ways:
Expense tracking
Tracking expenses is the first step through which you can start saving money, as through tracking it is possible to know the aspects of spending and determine what are the most necessary, and what can be dispensed with.
Create an appropriate budget
The budget comes in second place in terms of importance in terms of saving steps, as the budget helps in organizing spending, through which all aspects of spending and specific amounts of spending can be identified, and it is worth noting that without a budget, extravagance becomes easier.
Getting rid of debt
Debt constitutes a great burden on the salary, especially if it entails profits such as credit cards. In the event that you start saving money, you must first develop a plan to get rid of debts first, in order to reduce the profits incurred from them and use these profits in a savings plan.
Reducing expenses
These are expenses that can be dispensed with or find a less expensive alternative, and examples of them are taking food to work instead of buying it, buying cheap sports equipment to exercise indoors instead of joining a gym, and sharing a car with others for a fee when going to the work.
Price negotiation
When buying or even paying bills, the full amount is not always paid, as prices can often be negotiated to obtain a discount, and another way to get discounts is not to buy at the beginning of the season, and this is usually related to clothes, as prices often drop in Mid and end of the season.
Reducing accommodation costs
This item is related to rented homes, as accommodation costs can be reduced by moving to less expensive residential areas, as well as living in smaller homes and therefore less expensive. On the other hand, smaller homes reduce heating, air conditioning and energy costs in general.
Savings at an early age
When starting to save at an early age, it may not be necessary to deduct a large amount from the salary, because the time period for saving is longer,specially when the savings are for retirement or for a long-term project such as buying a house or making an investment.
Start saving first
It means deducting the savings amount directly upon obtaining the salary, and before paying any expenses, so that the money allocated for savings is not a surplus from the budget and cash is available for exchange, and it is preferable to create a sub-savings account in the bank so that the savings amount is automatically deducted when paying the salary.
Splitting your salary is the future
The constant tendency to spend without prior plans constitutes an obstacle to the future, especially during long periods when the individual does not know what he will encounter during it.
The numbers and savings experiences indicate that this method is very effective for improving problems and improving the quality of life, especially if it results in small projects.
The difference between saving and investment is a fine line that every person with a productive mindset masters, and the entrepreneur has a wonderful saying in this regard:
“I will not marry my daughter to a poor man (meaning that he does not know the way to wealth).”