How to create saving habits
Saving is a matter of habit. Make it part of your life as soon as possible to help your future self. Here we share some tips to make saving a habit:
Tip #1: Know your budget
Do you know how much you spend in a month? Open an excel page and type the essential expenses you have per month, don’t forget anything, rent, gas, food… all the first-hand necessities. After that, set a budget for all the “extras” you may need, don’t make this “extra” too large, remember, we want to have fun but we also want that fun to last for the rest of our lives.
Tip #2: Save a percentage of what you make
Don’t save a set amount of money, instead, save a percentage of your income. This way, your savings will keep pace with your income and you will eliminate the stress of saving an amount of money you may not always be able to set aside and avoid increasing the way you spend money when you start growing financially. Experts recommend saving 10 to 20% of your monthly income.
Tip #3: Learn the difference between what you need and what you want
It is okay to treat yourself every now and then but don’t let it become a habit. In the finance world, the term “ant expenses” is a big enemy. It refers to all the small expenses we have daily, “what would a $5 dollar coffee would do to my budget?”, let’s do the math… $5 every weekday makes around $1,300. So next time you want to buy something ask yourself: Do I need it? What will happen if I don’t get it?
Tip #4: Set saving goals
Having a goal will help you stay motivated and see each step as part of the journey. Set short, medium, and long-term goals and try to make them measurable, achievable, and specific.
Tip #5: Think long term, save short term
Having a good relationship with money and saving is more like a marathon, not a sprint. You can save for your retirement and know that it will help you be happier today because you live with less financial stress.
Are you ready to start saving? At Air Insurance we can help you find the best plan for you that will maximize the result of your savings. We offer “360º Insurance Guidance” which includes risk analysis and custom-built plans.
Protect your future today, call +52 55 4444 6043 or send us an email at info@air.com.mx
The information in this article is subject to terms and conditions applicable to the time of writing. If you have any questions about the current applicability of this information, please contact an AIR Insurance Brokers advisor.
