Saving money is one of the greatest issues people face. In a world that tries to stimulate consumption as much as it is possible, you will find a lot of temptation to spend all your hard-earned money. Most of the people are not even noticing that they are sacrificing their long-term well-being for some things that gives them satisfaction for a short period of time.
If you are reading this article, it is clear that you think different and you want to do things in a smarter way. You are also probably searching for some tips for personal budget and that is why we want to give a simple and effective way to save some money. Although the sums might be small in the short run, you will see that in the longer run results are better than you would expect.
The 10% rule
Let’s say that you are currently earning 1k per month. This number is below average and we’ve choose it with purpose, because we do not want to artificially inflate the numbers, so they will look better. Make sure to receive your salary on a bank account, not cash. You’ll see in the following statements why.
Open a savings account
The next step would be to open a savings account. A private pension account would also be a good idea. Preferably, your bank account and your savings account should be opened at the same bank, so it will be easier to make the next step. We won’t recommend any bank, it is up to you to choose one that you think fits the best. Do a little research, find out what feedback other customers are offering and only then open the account.
Set a monthly transfer to the savings account
You have the possibility to set a monthly payment from your bank account to your savings account. Make sure to set a date that is after the date you receive your salary, so you won’t encounter any issues. Set your account to automatically send 10% each month to your savings account.
If you do the math, for a 1k account, 10% means 100, 100 multiplied by 12 equals 1200 and in 10 years you will have 12,000. Simple enough to save a decent amount of money and improve your personal budget.
Meta description: Find out an easy way to save money in order to be able to manage your monthly expenses. See how you could do that for free. Find out more in this material.
