The current economic situation may well be called unstable. Most people sooner or later begin to think about how to save money with a small salary. Indeed, in addition to the required expenses, a person wants to create a financial airbag for himself, entertainment is also needed. There is a lot of information presented as the "rules of money", or rather, their receipt, preservation and multiplication. And often these rules contradict each other. But some of them are worth paying attention to.
Spend less than you earn
It would seem that this is an absolutely obvious truth. But many people often forget about it. Loans, debts, the purchase of unnecessary things to the detriment of vital purchases - all this drives personal finances to the bottom, which is extremely difficult to rise from. Therefore, violating this golden rule of money is not just harmful, but, it can be said, extremely dangerous. Indeed, in addition to financial problems, such a life can cause health problems due to the stress associated with constant debt. And the treatment of neurosis, in addition to a significant deterioration in the quality of life, can also hurt affordably.
But how to save with a small salary? Refusal of unnecessary expenses is not related to the regime of extremely austerity, when a person refuses everything except vital things, such as food, payment of bills, transport and communications. In the long run, such a mode of life will only increase psychological stress. Just do an audit of your spending and determine what you definitely need, what makes your life more comfortable and what you buy without need. Getting rid of unnecessary requirements for your consumption will make it much easier for you, as the stress associated with the inability to acquire something will disappear.
Give up loans and credit cards
Another golden rule of money, not as obvious as the previous one: do not use credit money. Yes, a credit card in your pocket soothes and gives a feeling of financial freedom. But this feeling is illusory: sooner or later a loan will have to be given. At this moment, the popular truth: "You take other people's money, and give your own" - appears before a man in all his wisdom. In addition, you will have to return with a very tangible overpayment.
The habit of living in debt relaxes and makes you commit more rash spending. One day, a person will simply get bogged down in loans that he can no longer repay. Therefore, refuse to constantly carry a credit card with you, and even better - find out at the bank how to close it faster. Refinance the loan if you think that interest can be reduced. Find a way to find money for big expenses without resorting to the services of banking organizations.
Invest in what will bring income in the future
It is far from being only about the almost abusive word "investment", although about them too. Rather, it is a call to look at yourself, your desires and opportunities. Income does not have to be expressed in a solid amount and appear immediately. Getting a valuable skill may not bring you money right now, however, using this skill in your work will help you achieve your financial goals much faster.
Analyze what could be such a development point. Skills, knowledge, assets of a promising business, obtaining a specialist certificate. Any investment with the expectation of using the results for your own benefit can be considered an investment. And practice shows that investments in one’s health, education and social connections are the most recouped among all types of investments. However, investing in this way, do not fall into the trap of indulging your desires under the guise of investing in yourself. It should be clearly understood which contribution will propel you forward, and which will only pull back and devour money and time.
Diversification
Sharing risks is also not completely new. But from the point of view of diversification, one can approach not only investments. Diversify all sources of income.
Most people from the methods of earning can only name work on a standard schedule. Try to find another way through which finances will come to you. Work with multiple sources of money. Develop several areas that may be of interest to you. Make diverse acquaintances. Do not tie your well-being to one thing, and then the question of how to save money with a small salary will not bother you. After all, if one source runs out, it can easily be replaced by another. And in good times you will receive several streams at once, which you can spend and invest at your discretion.
Set aside some of the earned
Many already know about the well-known rule of money and the formation of savings, which states that 10% of earnings must be deferred. This rule is absolutely true, however, the rigid framework that limits the amount to exactly 10% of earnings is not entirely correct. Life can change, and if yesterday 10% of the earnings seemed an insignificant part of equity, today this amount can be extremely useful.
Try to analyze your financial situation and adjust the percentage of deferred money to the realities of life. But never waste absolutely everything. The habit of putting aside even a ruble develops in a person the ability to spend responsibly. In addition, even a small amount can become significant if you double it for several months in a row.
Rationalize your spending
The most difficult rule of money. It requires not only constant thoughts about what to spend, but also about how to spend. The first step towards rationalizing spending will be to change the perception of money. Think about money correctly: they are nothing more than a tool. What deserves real attention is what exactly you want to get with this tool.
Pay attention to what your life is, what you need to improve its quality. Objectively analyze all its aspects. Pay attention to your values. It is necessary to clearly and without excessive emotions to separate what is impossible to do without what is acquired unnecessarily. And then, without regret, part with unnecessary objects of desires.
Plan your goals
Many people promise to start planning tomorrow, the day after tomorrow, or next week. However, many people forget about planning, because it seems to them boring and deprives life of the joy of sudden purchases.
Plan your expenses in a way that is convenient for you. This does not have to be a thick notebook for a full-fledged home accounting, where everything will be painted to the penny. If it is extremely important for you to be able to buy a small trifle at any time, select a separate budget column for this with a fixed amount and do not go beyond it.
Planning should not oppress you, it is designed to make you see which path to your financial goal you have already passed, and what part of this path has yet to go. Observing how you are moving towards the desired goal can be very inspiring.
Learn constantly
This applies not only to areas directly related to earnings. Yes, improving yourself in the profession is extremely important. Studying the work of markets and investment rules will also give the result in the form of increased wealth if you plan to invest. However, even regular hobbyist training or reading literature on a finance-neutral topic can help you learn how to adjust personal income.
Each time you learn something new, you broaden your horizons, learn to analyze information, train your attention, memory and concentration. As a result, your ability to quickly and accurately understand the situation may one day bring significant dividends, including financial ones.
Find something that really captivates you. Read good literature, learn a new profession. Even if this alone does not bring you money, your ability to think, seek and learn will increase the chances of increasing your income in the future.