It is true. Trying to save money on everything that surrounds you is one of the worst strategies you can take to manage your Personal Finance. It is not that the immediate result is not satisfactory, but because in the medium and long term it simply does not work and will even have an unsatisfactory result.
Like planning sudden diets so that in the summer you are in shape and then letting yourself be carried back to the previous weight, money issues work in a similar way.
In fact, most people think of saving money whenever something does not work out the best way, such as a high repair at home or in the car, lose control of credit cards, over consumption, among others. In the post-event period one looks at all expenses as if they were targets. It decreases the electricity bill, the bill for water, gas, food, clothing, leisure. He re-formulates and eliminates habits and lives dissatisfied with the new life.
In 6 Months Everything Ends and Can Not Save More
I am optimistic that an attitude like the one described above for money will last for 6 months. As a rule, as soon as the first signs of financial distress begin to emerge, the first consumer desires begin to emerge and the thought “This month I was able to save 100 euros.
In 5 months I can buy the iPad.” seem ridiculous, but it happens with a lot of regularity and once you buy the iPad, there have been 5 months of financial effort.
To Save Money You Must Plan
Planning how you want to save money is the best way to go and I assure you that it will give you more fruits in the medium and long term, as it will allow you to create the saving routine. Strategic planning works by setting targets for each heading and striving to achieve each defined goal step by step.
But you must not be too ambitious not to put all the effort at risk. If you want to save on several items you will end up saving nothing at all. Define at most two goals, for example:
- We will save on supermarket purchases 50 euros every month.
- We will seek to reduce our fuel expenses by 50 euros a month.
All Goals Should Have Gradual Evolution If You Want To Succeed
In each goal will gradually evolve, ie, not reducing the amount you want to save, but slowly reducing and adapting to each new reality. An example is the goal of wanting to save 50 euros every month in food, to adopt an evolution of the type:
- 1st month – reduce 20 euros by choosing to buy white brand products;
- 2nd month – add 15 euros to 20 euros last month reformulating purchasing habits through the rationalization of non-essential products;
- 3rd month – reach 50 euros with planning healthy and cheaper meals;
- 4th month – keep the 50 euros and evaluate the impact of the previous measures on monthly food by advising the need for them and evaluating the final withdrawal of the previous habits.
This process applies to all goals and allows you to create new routines where you can save money without major emotional impacts or distress needs. Once you reach a goal of not forgetting to keep it alive. Adopt the strategic model you developed and analyze other solutions with the same effect, as you will not want to feed yourself in the same way every month.
Create Savings Habits To Save Money
In the previous examples the Reader has seen a simple way of saving that will create solid foundations for the maintenance of such habit. The motivation for this is important so that feeling motivated is seeing the fruits of the effort you make. One of the ways to force such motivation is to obey our mini guide to really save money where the importance of automating savings is carefully described, alerting to the need for autonomous savings in products such as term deposits or savings certificates.
In this way, by automating the money you have saved with your savings strategy, you will feel responsible for maintaining such automation, thus keeping the “obligation” to keep such a model in place. The motivation now reinforced by automation will lead to the habit we define as a habit of saving, thus being directly related to motivation.