3 Hacks to Help You Save More Money
If you can understand that saving money is the key to building wealth, then you’ve won the mediocre haul.
Everybody knew how essential it is to save money, yet we don’t always do what we should, or what we know is good for us.
Saving money can sometimes make you feel like you’re not living your life the way you want to, or that you could even be living a better life in the present, being able to afford more of what you want, above waiting for a savings account to grow, before you can eventually cash out on it.
However, saving money can allow you to experience many benefits as well, such as growing your worth in money a lot faster, retiring earlier, or even afford something later in life that you never thought you’d be able to afford in the short haul. Needless to say; saving money will buy you financial freedom, eventually.
There’s just one thing, where on earth do you start and how do you maintain it, without tapping into your hard-earned cash? Well, we’ve got some helpful hacks for you.
3 Helpful hacks to save money easier
- Know your net worth
Do you have any idea what your net worth even is now? Most people will respond with the numbers they see on their paycheck, but that’s not your net worth. It is quite crucial that you know what it is, however as it is one of the most important metrics regarding money, that you have. Net worth is the number you own after deducted what you owe.
If you know your net worth, you should understand that the higher it is, the bigger scale of potential income you have, as you’ll know more about what you can invest, to increase it. The same goes for the amount you should save annually.
- Learn and apply the 50/30/20 rule
You must expand your net worth, to either keep your money or make more of it. It all comes down to budgeting. Just like your diet and relationship with food, it needs to be in check.
Your expenses should be 50% of your income, you should be able to reserve 30% of your income for everything else you want to buy, or spend it on traveling, and 20% should be your residual income, which you either use to save money for or repay your debt, and then save.
- Have clear goals
It’s easy to say that you want to retire 10 years earlier than you thought you ever would, but what are you doing to make it happen now?
To reap the benefits of your goals and bring them to life, you have to plan your finances in such a way, that you know where your money is going to, and also establish just how you’re getting ahead. This will also help you reach your goal faster.