One of the most difficult challenges, besides going to the gym, eating healthy or arriving early, is to be able to save – and it’s no mean feat! The situation in recent times has become much more complicated, the items in the basic basket are becoming more expensive but salaries are not growing.
That is why many people desist from saving, do it half-heartedly or make no effort at all to do so; many specialists recommend making savings starting from 10% of profits, despite this, many insist that it is impossible.
But what if we started saving only by reserving 1% of our salaries? It’s not impossible, and in this article we give you some creative ideas that can help you start your savings fund.
The 1% Technique
When it comes to savings, people say that they have 10%, 15%, 30% and even 50% of savings, so many people incredulously exclaim “That’s impossible!” And of course, it’s impossible if we decide to start our savings from 50%.
The process of saving is gradual, like a habit or, so that it is understood a little better, like a diet, if we alter our diet suddenly we risk suffering some kind of decompensation.
In the same way, to start with the habit of saving, it is vital to start from small changes, they may be imperceptible at first sight, but over time you will see very effective results.
Starting from the smallest in terms of savings would be 1%, but how do you do it? Actually, it’s very simple, for that, have a calculator at hand and one of your payroll receipts.
Of the total of your salary only calculate 1%, so, for example, if you receive in your payroll a total of $2,900.00 1% of the total would be $29.00, and ready! We were able to save 1%, but is that where it all ends?
Actually no, this will only be the beginning, because to be able to save 20% or even 50% the next step is to double the amount saved the following month, it would no longer be 1%, now it would be 2%, bearing in mind the previous example, it would no longer be $29.00, now it would be $58.00.
It would only be left to continue with this regime so that gradually, we can make our savings fund bigger; if we follow this method to the letter in one year we will have 12% savings, in 2 years, 24% and so on. In a matter of 4 years we could save 48% of our salary.
However, it is worth mentioning that this is not the only way to save, and of course, it does not mean that when implementing the 1% method we have to put aside other strategies that help us to boost our savings, so we continue with the list.
Always look for the cheapest alternative
This method is very useful when making pantry purchases or household related expenses; it is very important, always make a comparison of what items we buy and always look for an alternative that is cheaper.
Suppose that when you go shopping at the super you buy a carton of milk that costs $19.00 and you see that there is another very similar one that has a cost of $17.00, you do not have to hesitate, buy the lowest price and thus you will continue contributing to make your savings fund.
In a very similar way and although it is something that some already do, it is highly recommended that you look for offers or promotions in which products are added to the purchase or where there are discounts on the prices of items you normally purchase.
The vase method
It may seem very hackneyed and even romantic, but this method, if carried out with the necessary discipline, can be very effective, it is very simple. In a vase or maybe it can be a bottle you have to pour a certain amount of money a day, let the vase be filled and when we have least noticed, we will have a considerable sum accumulated.
You can impose a daily fee of $10.00 or $20.00, although there are also very interesting variables that range from depositing the cost of those cravings or non-essential items that we buy to throw all the coins of a certain denomination that come into our hands during that day.
The important thing about this method is not to stop depositing in the vase, to do it continuously and above all, to avoid at all costs to open the vase and to take out the money because that means that we would spend it immediately.
The Japanese Kakeibo Tradition
Japan is a country characterized by the order and discipline of its people, in every aspect. One of their traditions that has made them have the worldwide recognition of being a disciplined people is this, the Kakeibo or Kakebo.
The kakeibo owes its name to a notebook or diary that the Japanese use to be able to carry out a record per month or per week of the pay they receive and how the expenses will be distributed according to their needs.
It is the custom of the average Japanese to sit down and with all the discipline and rigor possible, accompanied by their receipts or invoices, give themselves to the arduous task of writing down the expenses that have been made, the expenses that come and detect where there are “leaks” of money in order to make a new planning or reinforce the one already made.
Usually this activity is done by Japanese housewives, however, there are many occasions when couples do it together and even if they already have children, include them in this practice, so that from their early childhood understand the value of saving through Kakeibo.
This article only lists some of the simplest and creative methods that can help give you a first push to start a discipline of saving, however, these are not all, there are many other methods that you can know, and even create your own.
Of course, saving requires a lot of discipline and sometimes self-control. Labor requires sacrifices, but the benefits of saving in the long run are the best. Whether you choose only the 1% method or want to combine it with some other method mentioned in this article, your effort will be more than compensated in the long run.