How much do we save?
Best ways to save money on a tight budget |
3 Money mistakes we should avoid
“Money is usually attracted, not pursued”
Jim Rohn
Nowadays, money is a main topic that is discussed from people of all ages. Although salaries in Albania do not give you the chance to have good savings, with the right management you can achieve all the goals you have set. Young people are predominantly inclined to spend monthly salary in all forms, not worrying that their budget may have been affected by the end of the month. Although with minimal wages, everyone today tries to offer themselves the latest luxuries which cost almost 80% of monthly wages.
But how many people know the real value of money? How many people spend money without even thinking about their unpaid debts?
The main question I would like to represent is: how many people follow a plan how to save their money? If you know how to save and spend your money, doesn’t mean you’re “tight fisted”. It means you’re wise enough to manage your incomes. It means you can accomplish your needs and your desires today, without worrying that you’re going to be broke tomorrow. It’s about time to start your own plan of saving money.
Think about an amount of money you need to buy the first thing that comes up in your mind. You may need 3 months, 5 months, a year. The most important thing is that in the end you can afford it without worrying about other taxes and expenses.
“It’s not your salary that makes you rich, it’s your spending habits”
Charles A. Jaffe
Goals
Goals
The moment you decide to save some money you must be aware for cutting your expenses in any way you can. Goals that you are going to set up will be the first step to increase your income. Take time and write down what you want your goals to be and where do you want to see yourself in the future.
You can be young without money, but you can’t be old without it.
Tennessee Williams
The Priorities
The Priorities
After getting clear about your goals, you need to determine which ones are more important also based in the time they take to get accomplished. Never try to fulfill all the goals at once because you might just get confused. We are not talking about some magic tricks we are talking about the magic saving plan.
Emergency Funds
Emergency Funds
An emergency fund should be your nr.1 priority. Having an emergency fund prevents you having to go into debt if worst happens. It’s wise to have at least 3 months of expenses in your emergency fund.
3 Money mistakes we should avoid !
In the very first moment you are willing to keep some money aside you need to convince yourself to get rid of some habits you used to have.
• Credit Card Debt
In this point we do not want to tell you to avoid using credit cards. Through them you can identify all the expenses you incurred, even you can get valuable bonuses, but that does not mean spending more money than you need just because your card limit allows it.
• Spending more than you earn
One of the biggest mistakes we made is spending money on things we can’t afford in that moment. This is a money mistakes that is 100% guaranteed to keep you broke.
• Buying items just because they are on sale
Everyone loves great deals for sure but if you are only buying things that you don’t need just because they are on sale then that’s definitely a problem. When sale time you always ask yourself: Is this something I truly need?
