5 saving methods that work

Far from leaving it as impossible seeing the prices of the supermarket, electricity and others, saving has become the priority objective of many people. Whether it is to be protected against unforeseen events , to prepare a trip or for any other matter, the truth is that interest in the economy and finance is palpable in the environment.

What methods are used to save?

In addition to being able to open a bank account with certain characteristics conducive to saving, there are several saving methods that work and that you should try as soon as possible. For their efficiency and simplicity we have selected five of them. We encourage you to take a look and value them carefully, so that you can assess them and opt for the one that best suits your needs and personal circumstances.

The envelope method

If something works, why change it? Years ago, the salary was received in cash or check, with which all the money tended to be collected in cash and made items to cover the expenses foreseen that month. Once it was clear how to distribute the income, each envelope was marked with the expense allocated to that need and the corresponding amount was entered.

• With the money organized and distributed, the money that was left for other less important expenses was more clearly seen. Of that amount, 10% had to be reserved for savings .
• Currently, income usually goes directly to bank accounts, so you can update the method by doing it in reverse, that is, take the money you want to allocate specifically to savings from the bank and put it in its corresponding envelope.
• To do this, you must first define a savings goal, since having clear goals simplifies the task. Being clear about how much to save per month according to what you enter will also be very useful.
• The ideal thing is to withdraw the money destined for savings at the beginning of the month, so you make sure you meet your goals. Of course, you can not touch it under any circumstances.

The 52 week method

It is often said that saving is more a matter of perseverance than quantity. With the 52-week method, you agree to enter every Monday the amount of money equivalent to the number of the week it touches . As easy as putting one euro the first week, two the second and so on. Thus you would achieve more than 1,300 euros.

• What is its great disadvantage? It is evident that at first it will not cost you anything, since the amounts are very small, but as the year goes by and the amount progressively increases , it will be more complicated. Therefore, we recommend that you give it a more real approach.
• The most practical thing would be for you to alternate large amounts and smaller amounts , so it would be more distributed and would not involve so much effort or economic disaster at the end of the month, especially if it coincides with key months such as Christmas or summer.
• In this way, you would set aside one euro the first week, 52 euros the second, two euros the third, 51 the fourth, etc. More distributed, more feasible .

The 50/30/20 method

It sounds like a complicated formula, but we promise that under these figures you will discover an easy and effective system. To put it into practice, the first thing you have to be clear about is the monthly income you have. From there you will have to distribute them in percentages.

• The first of them will correspond to monthly expenses, the second will be for other expenses and possible unforeseen events, and the third will be for savings .
• You will also have to take into account some considerations such as whether you are paying a mortgage , since you save around 20-30%, or distinguish between whether you are a permanent employee or self-employed. In this case, you will have to save more because you do not accumulate seniority, settlement or compensation, and income is more irregular and uncertain.

The Harv Eker Savings Method

Continuing with the idea of ​​percentages, the Canadian businessman and motivational speaker Harv Eker, author of the book ‘The Secrets of the Millionaire Mind’, proposes a simple system to distribute income in different percentages and thus be able to save. According to Eker, you can do it without giving up whims, without neglecting personal growth and even being supportive.

• 55% would be destined for basic needs such as housing, water or food.
• 10% would be destined for training , from books or office supplies to courses or exhibitions.
• 10% would be for savings and could not be touched in any case.
• 10% would be reserved for long-term investments such as getting a driver’s license, a family trip or renovating the furniture in the living room.
• 10% to invest in leisure or some whim.
• 5% for donations .

What is the Kakebo method?

Among the saving methods that work we find this one created in 1904 by the Japanese Motoko Hani. Although it sounds most exotic, the Kakebo method is nothing more than the accounting book of a lifetime adapted to the domestic economy. More than looking to save a certain amount, it allows you to know the state of your financial health and the consumption habits that harm it in order to readjust it and establish long-term savings strategies.

To put it into practice you need an account book in which you will record all your income and, of course, all your daily expenses (even the smallest ones) to be able to evaluate them later on a monthly and annual level. To carry it out you will have to:

• Write down the expenses and fixed monthly income (payroll, water or electricity, among others) to know how much money you have for the rest of the disbursements.
• Write down the date and the amount of the different expenses that you are making during that month in the corresponding section: clothing, food, whims, leisure or culture.
• Constancy is essential for it to be effective. By writing down everything in detail, all those superfluous expenses that hinder your ability to save and your economy will be reflected.
• It will help you to be aware of the importance of ant expenses , that is, those very small ones that end up making up a lot.

What is the most effective way to save?

If you don’t know how to save money if you earn little , we remind you that in order to save it is essential to know your real financial situation , both your income and your expenses. The reason for this is that you can have a great salary, but so many expenses that you even find yourself in a hurry at the end of the month. In that case you will have to readjust priorities and modify habits.