How to save money in the family: 4 tips
Many articles about finance say that you need to invest in investments in order to secure a wonderful and carefree future for yourself. And where to get the money? After all, not everyone was lucky enough to get a high-paying job or start their own business. Sometimes, even, there is not enough money for basic necessities. No matter how trite it sounds, but the rational use of available funds can help solve the issue of lack of money. In this article, we will talk about how to save money in the family even with a small salary and even make money on it.
Few people like to save money. After all, saving means limiting yourself. And so I want to live a full and vibrant life. It is possible to enjoy life, even with a modest salary, if you approach expenses rationally.
Where to start saving
To begin with, let’s replace the term "saving" with "rational spending". So, at least, we will remove the internal tension and protest against the word "save".
So where and how to start rationally spending the little money that we have? We will not discover America, but we need to start by developing our money skills.
The three fundamental money skills are value, manage and save. These skills form the basis of financial success and well-being. Each of them is important. After all, if you cannot value money, then you will not have a desire to manage it. Accordingly, in the absence of money management, it is impossible to save them. And this already directly affects the possibilities of investing money and achieving financial well-being.
how to manage money
All three of these skills are well developed when managing a family budget. After all, this allows us to learn, first of all, to take into account our expenses, control and plan them. Because when we know what our money is spent on, it is much easier to start spending and managing it rationally. And the information in this article will help you optimize your daily expenses.
Additionally, developing money skills will help improve your financial literacy and, as a result, your financial situation. For more information on how to develop financial literacy, read the article (link opens in a new window).
Rational spending rules
In the theory of trade, there are two main parameters that affect the price when selling, in addition to the volume and the desire of the seller to earn. It’s delivery time and quality. For example, if we need something quickly and of good quality, then we will have to pay a high price for it. Conversely, if we need a lower price, then we either have to wait longer or sacrifice the quality of the product or service.
This is also true for the rational use of money. The more money we want to save, the more time we have to spend on the buying process. Since we will not sacrifice the quality of the goods under any circumstances. Health is more important, especially our loved ones.
Conventionally, the rational purchase process can be divided into two stages: preparation for the purchase and the purchase itself.
At the preparation stage, we must draw up a detailed list of necessary purchases, both goods and services. If possible, even with the name of the manufacturer.
Then you should compare the prices of these products in different stores. Fortunately, in the age of the Internet, this is quite simple to do. Both in manual mode and with the help of specialized services. For example, Edadil.
After that, we need to determine what and in which store we will buy. If necessary, consider the route of movement.
If the store where we found goods at a lower price than others is far away and you will need to travel by car, then it is worth calculating: is this justified? Wouldn’t it be more profitable to go to a nearby store?
At the stage of purchase, you should strictly follow the shopping list and avoid spontaneous purchases. It is also worth looking at the goods of other manufacturers, provided that they are of the same quality or better and they have promotions. That is, they are now cheaper than our usual product.
Before talking about tips for saving the family budget, we propose to define the basic principles and approaches to rational spending.
First, we begin to manage and plan the family budget. As mentioned earlier, understanding where your money goes and, moreover, in what amount, will allow you to approach the issue of saving money more holistically. So, for example, it may turn out that significant amounts are spent on optional purchases (sweets, soda, and so on). Read more about how to keep a family budget in the article (link will open in a new window).
Secondly, we expand the horizon of shopping planning. That is, you need to think over your purchases in advance and strive to buy when there is no demand for specific goods. For example, summer things to buy in the fall.
Thirdly, we pay attention to the little things. When making daily cash expenditures, change often remains, which, at best, settles in the wallet. But more often it runs into pockets and, as a result, is lost. The best solution would be to buy or make a piggy bank for small change. This will help to save additional money, albeit small.
Fourth, we use store loyalty programs. And keeping a family budget and planning expenses will help you understand how appropriate they are. In any case, they will help reduce your costs.
Bad Saving Tips
Below are tips to help save money in the family, even with a small salary. They are among the most common household budget items.
This is the largest part of the monthly and fixed expenses of the family. However, you can save money by buying them.
Before going to the grocery store, make a shopping list and strictly follow it.
– Go shopping at the grocery store full. On an empty stomach, we make more spontaneous and unnecessary spending.
– Study the cost of similar products in different stores. To do this, you can use specialized services.
– buy products that are participating in promotions, but this should not be harmful to health. If the product is of poor quality, avoid buying it. Your health and the health of your loved ones is more important. Treatment will cost much more.
– in many large cities there are wholesale food depots. You can team up with friends or relatives and buy groceries with them at wholesale prices. This will save you a lot of money on your budget.
– using laser barcode readers, follow the rule of "trust but verify", check the price with the price tag on the shelf – mistakes happen. The same rule applies to checks received at the checkout.
Cook at home more often and take lunch with you to work. Prices are higher in restaurants and cafes.
– Avoid the purchase of semi-finished products and fast food. They are not only expensive, but also harmful to health. Treatment can significantly reduce accumulation.
One of the constant items of expenditure of the family budget and no less costly part of it, which, moreover, tends to increase from year to year.
– Avoid paying utility bills with a commission. Use services and bank cards that do not charge a fee for payment. Many service providers accept payment on their sites and also without commission. Take advantage of this opportunity.
– take a shower instead of a bath. So less water will be used, respectively, and the bill will be less.
When taking a shower, turn off the water when you lather. This is another way to reduce water consumption.
– The dishwasher should only be turned on when it is full of dishes. This will reduce the consumption of both water and electricity.
– stop using paper towels, it will be more economical to wash regular ones.
– in cool weather, stop turning on the heater, it is better to wear a sweater.
Expenses for clothes and other goods
Another cost item that you can save on.
– buy things out of season. Usually things are bought at the moment when they are very needed. That is, we buy summer shorts in the summer or before the start of the holidays. And this is just in the season and the prices are high. In winter or autumn, exactly the same shorts will be sold at a good discount.
– you can save additionally if you buy things and goods not in large shopping centers, but in discount centers, where many world brands are also present.
– love fashionable clothes. Buy it from last year’s collections, very often, these collections are sold at a significant discount.
– branded clothing and goods have a higher cost compared to analogues. Focus not on the brand, but on the quality. You can save a lot on this.
– to prevent spontaneous purchases, use a psychological trick. Put a note in your wallet: "Do you really need this?"
This is an important item of expenditure, as it may require significant funds, although not on a permanent basis. Therefore, it is important to form a budget for this article in advance and on an ongoing basis.
– Buy medicines by the treating substance, not by the name. Almost all expensive drugs have cheaper substitutes that are just as effective.
– take care of your health. Exercise, eat right. This is a cheaper way than treatment.
Financial services costs
Financial services are invariably associated with additional costs such as commissions, bonuses, and so on. Therefore, it is important to know them and find ways to minimize them.
Plan ahead for when you may need cash. A fee may be charged for withdrawing money from ATMs of third-party banks.
— study the offers of third-party banks. After all, they may have more favorable conditions for commissions and other products.
Avoid accumulating credit card debt. After all, the interest rate is usually high, and over time, payments will not be lifting. For more information on how to use a credit card correctly, read the article (link will open in a new window).
– if circumstances force you to borrow, then look for cards or a loan with a lower interest rate.
In the daily routine, do not forget about the rest. When you start to keep a family budget, remember this item of expenditure. After all, you can have a good rest and for reasonable money.
– Plan your vacation in advance.
– buy plane and train tickets in advance, at the time of the opening of sales on the date you are interested in. This way you can save a lot.
– many hotels offer a good discount for early bookings. Take advantage of this opportunity.
– when flying, spend at least Saturday at your destination. This will reduce the cost of air tickets.
– go to the park or have a picnic – free entertainment is often the best.
Here are some more tips to reduce family daily expenses.
– communicate with friends via messengers instead of phone calls. This will reduce the cost of mobile communications.
– online cinemas or videotape rental will help reduce the cost of going to the cinema with the whole family.
– Prefer public transport over taxis. So it’s more economical.
The standard manufacturer’s warranty is usually sufficient. Do not spend extra money on extending the warranty or post-warranty service.
It is not advisable to buy things that you will use only a couple of times. Rent them.
– car owners can save the family budget, one has only to start washing the car themselves, instead of visiting car washes.
– Don’t play the lottery. The probability is very small, the chances of being killed by lightning are higher.
– do not throw away old things, because they can be sold. Fortunately, now there are many opportunities for this. For example, sites Avito, Yula and others.
time is money
How to make money on savings
Let’s look at a few practical examples of cost cutting that you can implement into your life today. In addition, they allow you to earn on this process.
The main income from the savings process can be obtained from the use of cashback services and programs.
Cashback is a kind of loyalty programs that are organized by both retailers and financial institutions. Using these tools, you can not only save on your daily expenses, but also return part of the funds spent on the purchase.
So, for example, when making purchases in stores as part of store loyalty programs, you can not only buy products at special prices, but also accumulate bonuses for purchases or cashback. For example, Globus, Lenta, Pyaterochka, Sportmaster, H&M, M-Video and others stores. These bonuses can be used to pay for a part of a future purchase.
It is better to pay for purchases in stores with bank cards, since many financial organizations also have their own loyalty programs and charge cashback for purchases. Thus, you can get a double benefit from shopping.
For example, Vostochny Bank offers a card that earns a 5% cashback for utility bills and purchases at pharmacies. These points can be redeemed for purchases made. Thus, there is a reduction in the cost of utilities and medicines. You can learn more about the map on the website (link will open in a new window).
Also, do not forget about the opportunity that the state gives us to return part of the money for the expenses incurred. It’s about tax deductions.
You can return part of the expenses in the amount of 13% for paying for medical services, buying medicines, training, buying an apartment, paying interest on a mortgage, deposited funds on IIA (individual investment account), life insurance. Now this can be done remotely, without queuing and visiting the branch of the Federal Tax Service.
Looking for a ray of light in the world of finance
In conclusion, I would like to add that you need to develop the habit of not making spontaneous purchases. Its essence is that when you have a desire to buy something, take a break. Don’t buy right away. Wait a couple of days and think carefully about the upcoming purchase. Do you really need it? Why do you need this purchase? Why do you need to do it? What tasks does she solve? Is there a more economical alternative?
After a few days and answers to these and other questions that you determine for yourself, you can change your mind about the purchase. And to refuse it or, on the contrary, to understand that it is necessary.
Develop your financial literacy. Manage your cash flow and manage your family budget. And invest the next pay raise instead of spending more.
Invest in your development
Books are the most accessible source of knowledge in all areas of our lives. Make time for your self-development. Below is a list of books to develop your financial skills.
- "Think and Grow Rich" – Napoleon Hill
- "Rich kid, smart kid" – Robert Kiyosaki
- "Money or the ABC of Money" – Schaefer Bodo
- “124 ways to save money without hurting yourself" – Alexander Levitas
- How to Stop Worrying and Start Living – Dale Carnegie
- "The richest man in Babylon" – Clason George
- "Rich Dad Poor Dad" – Robert Kiyosaki
- "The Path to Financial Independence" – Schaefer Bodo
- "Money. Game Master – Tony Robbins
As a result, we want to add that the more thoughtfully and reasonedly you approach your daily purchases, the more secure your family budget will be. And what’s more, it will grow. Now you know how to save money in a family with a small salary and you can find new ways to do it.