It is really very hard to save money from your salary. Often, everything on your paycheck is just enough to cover your expenses.
Rent, food, transportation and bills are the basic.
If you have someone on your family that depends on your income too, it becomes even harder to stretch your budget.
So how can you be able to save money from your salary if that is the case? Is it really doable?
In this post, I will teach you how you can save money from your salary.
The points I am going to share with you are doable and actionable.
But it will require you to make some efforts, consistency and a lot of will power for a long time.
But before that, I recommend that you read first the post on how to start saving so you would also learn to live within your means and focusing on your goals.
So if you are ready, then let’s get started.
How to save money from your salary
Pay yourself first
This is where it will all start by paying yourself first. Besides, you won’t be able to save money from your salary if you do not keep a portion out of it.
It goes this way, pay yourself 10% of the amount of your salary and just keep it. The remaining 90% will be used on your basic expenses.
Do not use it for any other expenses unless for emergency reasons. Buying a new mobile phone is not an emergency, okay?
You can use this money if for example you had an accident or you got sick and you have to pay the hospital bills and for medicine. Do this every pay day and keep it.
Decide on your priorities
Of course you will have to eat. Because you will die if you do not eat. But do you have to eat on an expensive restaurant everyday?
Why not cook your own food and pack it for your lunch?
Try to reduce your power consumption by turning off lights on rooms that are not in used or by turning off appliances that are not in use.
Reduce your water consumption by scheduling your laundry day.
If you have any debts, try not to skip payments because you will lose more money because of interests penalties.
Is your Spotify and Netflix subscriptions a must for you to survive?
I don’t think so. Cut your subscriptions to save money from your salary.
Try doing this for a few times and you will realize how much money you can save.
Learn to budget your cash
Budgeting is a skill you need to learn in order to manage your money.
By learning this budgeting skill, you will be able to fully understand where your money is spent.
This way, you will be able to see an overview on how you can adjust your spending habit.
We will be posting an in depth tutorial for this topic soon. So watch out for it.
Track your expenses
Yes, you have to list down all your expenses.
No matter how expensive of how cheap you spent. List them all.
You will be able to see what you can reduce in your spending by doing this activity.
Plan your meals
Packing your lunch is good but it can be better if you plan for it.
Why is that? Because you will be able to save money from your salary if you go to market frequently.
You can also batch your cooking if you plan your meals.
Avoid shopping malls
Luckily, shopping malls are closed or limited nowadays because of the pandemic.
But still try to avoid going to shopping malls even after the pandemic, restrictions and lock downs has ended.
Stores in shopping malls are like vampires that will try to suck out all the money in your wallet.
If you see the magic words like SALE or 50% OFF or Buy one get one free, you will be tempted to buy something that you probably won’t ever have to use.
Reduce or give up your vices
If you’re a smoker, heavy drinker, gambler, addict for Lego, love to buy toys, always buying expensive make ups, try to give this things up temporarily or at least reduce it gradually until you can already control yourself.
Open a separate bank account
Where do you put your saving? On your cabinet? Under your mattress? Or you always carry it with you?
If you do this, there is a good chance that you might use the money saved.
Stash your savings on a separate bank account.
It should be separate from your salary account or any other bank accounts.
Open a separate back account exclusive only for your savings.
In this way, you will be aware that this account is for your future.
Life as an employee has been the life of many for a very long time. And that is where we get our bread and butter.
That salary is what we use to go on with our lives, enjoy a little and work more than ever.
But it does not always have to be that way.
You save a small portion of money from your salary so you can have a buffer fund in the future. So you will not need to work until you are 65 years old.
There are many personal finance blogs out there that are giving away free information about money management and saving your hard earned money.
Take the time to learn the points above and do it. And after a few months and a couple of practice, you will see your savings grow.
Partner it with actions, patience, consistency and will power. It might be slow, but it will grow over time.
Here is another resource for you to read: 6 Ways to Save Money from Your Salary