All of us have our own dreams, many of which often require a lot of money. So we have to learn to use money correctly in order to save enough for something we want. Yes, saving money is an art form that also has to be learned. If we learn how to deal with money, our dreams stop being just dreams and start coming true. The rules that have proven its effectiveness can help us do that.
Often, our financial trouble is caused not by how much money we have, but by how we use it. We are constantly searching for new solutions to make our life even more comfortable. So, now we present you with these 12 rules on saving money. Read and use them!
Consider the cost of use
Sometimes, we get in trouble when we’re trying to save money. Of course, there are basic things that we use every day and we should try to save money on them. But when we buy cheap things that are poor quality, we often end up buying these things more often.
Of course, we should make our decisions based on how much money we have, but we should not neglect the fact that the real cost of a product is not its price but how much time you can use it. To be more specific, here is a formula: real cost of a product = the price / the number of times you use it. And you should use this formula every time you want to make an important purchase.
Set a limit for everyday expenses.
Planning your expenses is one of the most important rules for managing your budget. After you plan for big purchases, try to limit the amount of money you spend every day. This will allow you to stop wasting money and avoid the urge to go to the store just to buy something tasty.
So, think carefully about the amount you can spend without prior planning (drink a coffee, pay for an additional ride in a taxi, and so on) and try not to spend more.
Satisfy your needs, not your wants.
In general, people don’t have that many needs: water, food, shelter, clothing, safety, good relationships with other people, and free will. By satisfying a need, we solve a problem, and in the end, this is what makes us satisfied.
When we satisfy the wants we have, we are often impulsive and we end up with useless junk which not only uses up our financial reserves, but also disappoints us. So, every time you want to buy something, ask yourself this question: do you really need this thing and what does it solve?
Lately, it has become pretty popular to exchange things. In general, we all have good things that we don’t need and we rarely use them. Why don’t you use them 100%? Even a cottage you don’t use can be useful: there are a lot of people who want to spend some time out of town.
You can also exchange clothes, toys, and books. You can do it with friends or with people you don’t know on the internet. This will now only allow you to save a lot of money, but will also contribute to the eco-friendly movement — you will give things a second life.