Saving a lot of money is a great achievement, but you can't do it without bumping along the way. It is easy for some people to save money, but for others it will take a lot of effort. Roughly 26% of adults do not have emergency savings, and 36% have not yet started saving for retirement.
This is not surprising given that many consumers struggle with high-interest loans and borrowings. Consequently, a huge number of people live paycheck to paycheck. This can lead to disaster, because the financial crisis comes unexpectedly. Also, job loss, serious illness, or divorce can significantly affect your financial well-being.
You are reading this article, which means you are already on the right track. If saving cannot become a habit for you, it is most rational to keep your money in the bank. When it comes to keeping cash in your wallet, there are several methods that should be avoided. If you are not careful, you can damage both your finances and your life. Also take a look at Article 6 Useless Money Taking Habits.
1. Buying in bulk
Purchasing goods from wholesalers is not always a good option. If you live alone, and guests are not frequent for you, there is no need for wholesale purchases. You end up spending a lot more money. Be realistic. Do you really use all of these products? And where will you store all this?
Goods from wholesalers do not always have the optimal cost. Warehouse stores rarely have the best prices for groceries and household items. Often, such stores make very low prices for unpopular and unnecessary goods, which people will surely fall for when they see a ridiculous price.
The best way
Buy the items you need separately, instead of buying a bundle that includes useless items along with the items you need. It is also beneficial to purchase universal multifunctional products. Don't get hung up on the brand.
If a product is a store's own brand, this does not mean that it is of poor quality. There are a number of products where the quality is disproportionate to the price. You can save up to 25% by going to the store's own brand.
2. Purchase of a discount card of the store
Many stores try to lure new customers by offering a discount (usually 10% to 15%) on their credit card purchases. However, this is not a very smart way to go in terms of savings. Adding another credit card to your wallet will make you spend more. Also, if you already have a sufficient number of credit cards, having another one will make your financial situation even worse.
Plus, the interest rates on store cards are higher than on traditional cards. The store's median annual income from retail credit cards is 23.84%. It makes no sense to go into debt for a 10-15% discount.
The best way
It can be very tempting to resort to a credit card while in the mall. You can find clothes that you like but don't fit the price, and a credit card will come in handy. Instead, do a closet revision.
You will find that you have some items that you have only worn a couple of times. Make a list of the things you really need and don't stray from it when shopping. This method will help you not to waste money on unnecessary things.
3. Indifference to retirement
It is very important to save money for retirement. If from now on you will save at least a couple of thousand every month, this will be a significant plus to your pension.
The sooner you start, the better. If you save 2,000 rubles a month, starting at the age of 25, by the time of retirement you will have about 900 thousand rubles. A delay of 10 years will take 300 thousand rubles. Think about it when you’re tempted to spend money on something unnecessary.
The best way
Don't make excuses for not saving for retirement. You will regret it if you don't start saving as early as possible.
4. Indifference to emergency savings
The best way to prepare for the blows of life is to have savings for emergencies. Don't be stingy in this situation. Don't have savings for "just in case"- very risky. Life is unpredictable and the next financial crisis may be just a few steps away.
It is better to be prepared for any situation, to know that you have insurance, and not to collect a lot of loans in case of financial difficulties.
The best way
Instead of ignoring the accumulation of money, save as much as possible. Although most financial experts recommend saving between 10% and 15% of salary, not everyone can afford it. Even if you can only leave 1000 rubles a month, this is just the beginning. Take small steps to create your emergency budget.
5. Shopping in stores from the category "Everything for one price"
You can find almost everything in stores like "Fix Price". For some consumers, this is the main way to stretch their salaries over the month. Shopping in such stores would seem to be an obvious way to save money, but there is another side.
This method can take even more money. Researchers have found that many of the products in these stores contain carcinogens. Thus, you will solve money problems, but you will acquire health problems. Not the best solution, is it?
The best way
Instead of buying everything in stores "for one price», Pay attention to the promotions in the local supermarket. You can also take the time to look for coupons in different stores. It may take longer, but this method will not harm your health.
6. Stationery "borrowed"
Don't try to save money by stealing from your employer. Sure, you might like sleek office toilet paper or pens, but that doesn't belong to you. Taking items from work deliberately is stealing. For a few hundred rubles, you should not tarnish your reputation.
The best way
If you really like office supplies, find out where your office manager buys them. When you're ready to purchase, mention that your employer is a customer of the store and try to negotiate a discount. It's better than stealing.
7. Skipping loan repayment
Did you miss your loan payment due to financial problems? Ultimately, this can tarnish your credit reputation. Missed payments have a big impact on your account, so try to pay your loan every month.
The best way
If you have problems with paying the loan, do not let the situation take its course. Failure to act out of fear or embarrassment will simply result in your debt being passed on to collectors. Then you have new problems.
Contact a loan advisor. He can change the date of your payment. With him, you will discuss options for managing your debt.
We recommend watching:
15 effective and working tips that, unlike the 7 we named above, really work and help you save your savings.
