Should you buy that purse? You just need to have that extra double cheeseburger for lunch today! Do your badminton rackets need an upgrade? Didn’t you buy the current ones last week? Next thing you know, you’re waiting for the next payday to make ends meet… Sounds familiar? We’ve all been there. But we all know that it is a frustrating position to be in for anyone. To address this issue, we’ve collected 3 interesting money saving strategies that we can use to save more money and maximize our wealth!
1. Create and Stick to a Budget
This is the simplest form of managing money you could use. Setting a budget could be as simple as logging your monthly income down and then budgeting it’s expenditures based on your needs and wants as per your living style. It’s always best to save 25 – 30 % of your income to investing in something such as real estate. You can find real estate options tailored to your investment objectives here.
2. Kakaiebo Technique
Originated from Japanese culture that dates backs during the time when Japan was an agricultural economy, the Kakaeibo technique is an effective way to plan your monthly income and log your expenses, while projecting your savings to increase your wealth!
This method consists of using two notebooks, a larger notebook where you write down your monthly income and your savings plan. The second, smaller notebook is the notebook where you log all of your expenses, the moment you make a purchase or spend your money.
Through this method, you can gain a mindful insight into your expenses and savings and it helps us understand where the money could be utilized better.
3. 50/30/20 Rule
This rule is an easy way to allocate your money before spending it on unnecessary things. The 50/30/20 things allocate your income like this:
50% – Needs
30% – Wants
20% – Saving/Paying off debt
This allocation allows you to make a better purchasing decision and enable you to save your money!
Managing money could be an intimidating proces but like everything, it’s very much possible. Using the above 3 methods, you can spend more wisely and increase your wealth through smart saving!
