Life hacking: How to learn to save money
Text: Anton Mukhataev
LOOKING FOR SIMPLE AND NOT VERY WAYS TO IMPROVE LIFE AND EXPLAIN why they work. Today we understand how to distribute our expenses so that the deposit in the bank grows and the money for entertainment remains.
62% of Russian citizens do not have savings and live from paycheck to paycheck, according to VTsIOM. It’s easy to explain: firstly, many people barely make ends meet and cannot afford to save, and secondly, during the Soviet and post-Soviet period people had the idea that, no matter how much they save, it’s still early or late burn, but because the remaining money is better to spend immediately. But now, when the Russian economy is in recession, and the ruble exchange rate is putting up anti-records, such an approach could turn into a disaster. Few people can be sure that they will not lose their jobs or will not face the fact that salaries will be delayed.
In the US, too, not everything is fine with financial literacy and savings of ordinary citizens. According to Alex von Tobel, the founder of LearnVest and the author of the book “Financially Fearless”, which became the bestseller of The New York Times, 76% of Americans live from paycheck to paycheck. The roots of the problem are different: the fact is that most young people enter adult life with an impressive college debt. They don’t manage to save money: almost all their earnings are spent on rent, loan payments and other mandatory expenses. But von Tobel believes that there is a way out of this snowball. It is enough to keep the budget and distribute expenses correctly: you can save money and not deprive yourself of pleasure.
“There are many principles of budget management, but the“ 50/20/30 rule ”is good because it works at the macro level. It allows you to save money and not indulge in pleasures,” explains Alex von Tobel. In her opinion, financial planning should not be accompanied deprivation. - There is no point in drawing up a budget if you cannot follow it. " If you follow her advice, then 50% of your monthly earnings should go to all the necessary expenses: rent or mortgage, transportation, food, utilities and other things, without which you will not get anywhere. 20% should go for savings or debt repayment, if any, and the remaining 30% for entertainment: shopping, restaurants, personal care, and more. Of course, not everyone can do it right away: someone only takes half their salary or even more to rent an apartment. But the ratio of 50/20/30 - this is what you definitely need to strive for. Although 20% in this formula is the most important part, von Tobel asks to leave a part of the money for himself so as not to lose motivation.
Photo: 1, 2 via Shutterstock
The material was first published on the site Look At Me