There are many tips for saving as much money as possible in an efficient manner. Some are more or less quick and easy to set up. To help you achieve this goal, we give you our best tips for saving money in this guide.
How to save money on a small salary?
Saving money when you have a small salary is not easy. But if you have goals and/or projects that require you to save, it is entirely possible with good budget management .
Indeed, there are several ways to ” put a little money aside ” and it’s not just a question of income.
1- Establish a spending plan for each week or month
This involves having a document in which you define a plan for spending your money each month (or each week). The goal is to spend your money on the things that matter most to you, whether that’s your home, clothes or other products. This way, you avoid spending it haphazardly and you will have a small reserve in case you need money quickly .
Be careful, this is not about no longer pleasing yourself. This approach is a way to teach yourself to spend consciously and according to your medium and long term objectives.
If you don’t know how to make a budget, you can find examples available online that can be done in just a few steps.
2- Start by asking yourself “why?”
This advice comes to us from the book by Simon Sinek, who pushes his readers to take action by analyzing the greatest leaders in this world. We therefore advise you to define your “why”, to clearly define the reason(s) that lead you to want to save .
Indeed, without knowing clearly why you want to save, you risk being frustrated when putting money into a savings account instead of consuming. Concretely, you may ask yourself this type of question when you want to save: Why refuse an evening with friends just to put a little money aside?
If your why is clear, you will define your priorities and know how to make concessions . It’s about spending better, rather than spending less .
3- Build up savings
When you are not in the habit, saving seems difficult or even impossible . Indeed, it is less obvious to save at the end of the month while waiting to see “what is left”, especially in the event of a difficult end of the month .
A simple way that all investors apply is to pay themselves first. This involves directly saving part of your salary as soon as you get paid . This transfer can be scheduled from the first week of each month. And this, before paying all your expenses such as energy or water bills, shopping, pleasure purchases, etc.
To do this, you can set up an automatic transfer of an amount each month . It would be like withholding tax but for yourself. The amount saved can be transferred to a Livret A or a codevi for example.
Also, it is important to save what you can save. You can start small and aim to increase the amount every quarter for example.
Another tip: you can use savings apps to support you and save automatically.
Now that you know how to manage your budget, all you have to do is choose the best savings solution. There are several types of investment, including:
Bank investments (also called mobile savings): booklet A, PEL, sustainable development booklet (LDD)
Financial investments (also called fixed savings): life insurance, securities accounts, retirement savings plan, real estate investment
Bills are part of the monthly (or annual) fixed expenses. However, there are possibilities to reduce them and reduce their impact on your purchasing power.
There are many tips for reducing your energy consumption : maintaining your equipment, insulating your home, switching off devices in standby mode, consuming electricity during off-peak hours, etc.
In addition, since 2007, it has been possible to reduce the price per kWh of energy by changing supplier. In fact, you will be able to make this change without risk, since it is free of charge and without commitment .
Most French people have subscribed to the regulated tariffs of historic energy suppliers EDF and Engie . But the prices charged are expensive and the amount increases over time. The best solution is to compare offers online according to your energy consumer profile, because suppliers offer discounts to help you save money
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