Hasty purchases completely kill any budget regardless of its size. There is always not enough money; we are used to borrowing and constantly tormenting ourselves with the same question: “How to save money and become a smart consumer?”
The word “economy” does not mean at all that you will begin to live poorly like a homeless and that you will deny yourself everything, just to collect the necessary amount for more important items.
No, saving funds means being a smart consumer and learning the art of distributing your budget properly and reasonably so that even a few coins are enough for everything that is needed and that is also left for your summer vacation.
One of the important social issues is the low level of financial literacy. We are capable of earning, but we often dispose of earnings inefficiently making unnecessary purchases. We are afraid to put funds on deposits or borrow because we do not trust financial institutions. We lack the skills not only on complex issues but also about elementary ones, such as conducting home accountancy.
If you are aware of why you should become a smart consumer your propensity to do it will increase. Learn to save a certain amount of money has always been the cherished desire of many people which at times is not easy to implement. We offer you some tips that will help you to make savings more consciously and intelligently.
How to start saving
First of all, you must understand that the process of being a smart consumer is not only about saving cash, but about self-discipline and dedication. Earning is just half a way. It is important not to squander them on trifles which is quite difficult from time to time. Therefore, the power of will is needed for effective savings. And not only in order to refrain from impulsive purchases, which often cause serious damage to the home budget. The other side of the medal is not better. Making the accumulation of funds an endeavor and to save on everything is not wise, either. First of all, there is the danger of becoming a thrifty person. Secondly, when you save on basic needs and limit yourself in elemental comfort, it will be hard not to “break off” in a few months of austerity and stop saving at all.
You will never be able to decide for yourself how to become a smart consumer until you understand why you need it. The main issue is to collect for something specific: a new computer, a car, an island in the ocean—anything. Goals can be different. Someone wants to go to the sea in the summer, someone lacks resources to buy a laptop or tablet, and someone intends to buy a new apartment. There are people who plan their lives for a little further period in their future than a week or several months. They are saving for self-education or the education of their children, for their own business, housing or a secured pension. When you have a clear vision of what you are collecting, then this process will not be hard and even will start to appeal to you.
Once you have decided on your savings, it is crucial to set a deadline for which you can collect the required amount. Collecting in order to buy yourself a new computer? Set your goal not just to accumulate on it, but to do it, for example, in one year exactly. Otherwise, according to the old habit, your efforts may vanish if you forget to save some finances on a monthly basis. Determine what amount of earnings you can postpone without experiencing severe discomfort.
There are different home budgeting systems. Everyone can choose the one that suits him more. For example, one of the most popular systems recommends that 20% be set aside for savings, 50% for items you need to live, and 30% for your own desires.
Is it possible to save when you do not earn much?
In most cases, when people say that they live on a shoestring budget, it is just an exaggeration. There are very few people who cannot save at least 10% of their income. All others simply do not have the will power or cannot effectively manage the results of their own work. People who really do not earn much are students.
What are the main principles for being a smart consumer for a young person?
Getting education is always expensive, but in some cases, it’s possible that the problem with funds is already very acute, and savings are a priority issue. But what is the best way to save for students and how can it be done without causing serious inconveniences?
Record all expenses
Make a special notebook for you or use your own phone. That’s just doing the record in detail and accurately and in a few days, you will be surprised how much has been spent for nothing.
Keep coins in a special moneybox
Often in stores, we are given the change by a coin, which we slip through pockets, and then we forget about them. Therefore, you can make a useful habit – immediately after coming home, pour out all the coins in the moneybox. You will see, very soon there will be a significant sum.
Pay in cash
We often use bank cards which is, of course, very convenient. But the problem is that this piece of plastic we do not perceive as real finances. Therefore, we can afford to spend a lot more with the card than we would spend by using “live” banknotes. Therefore, always withdrawing cash before purchasing can be a very good idea.
Buy food only after you have had meals
Make sure you are not hungry before going to the store or just for a walk. After all, when you are hungry, you can buy twice as much, and you will not be able to eat everything afterward. As a result, banknotes are thrown into the wind. You are never too young to learn how to save your funds. Exclusive story: My heart jumped out of the chest when I heard that the principal wanted to see me in his office. All the students and teachers were silent when I went out of the classroom. We all were aware of what was happening. Yesterday, when the school was empty (as we thought), I decided to rehearse with my friends in one school room. We created our rock band last year and wrote some items which I was singing and playing on my guitar. We made sure that there were no teachers in the school and went to the empty Assembly Hall which was near the principal`s office. We thought it was better than playing in a simple room, as the sound was deeper there. All of us were young students, so the idea to do something forbidden looked like a temptation. But now, this trip to the principal`s office seemed to me like the road of a lifetime. I was sure that principal would tell me off or even expel.
When I came into the principal`s office I saw that the principal was not alone there, my teacher was standing near his table. She was beaming like she had won an award. The principal calmly told me to sit down and pointed on the chair. When I was sitting, they started to talk. At first, I could not believe my ears, my second emotion was hesitation, and then I was over the moon. It turned out that when we were rehearsing with friends, the principal was sitting in his office, like that day he had a fair bit of work, so he had to hold up. He heard our performance and was so amazed that recorded some moments and sent them to our teacher of music. She was seizing for some young talented musicians for her work in the public organization, and we were the group of amazing young people she was looking for.
We had a lot of hard work to do with her, but after the performance, some influential people noticed us and made us a proposal. Now we are a famous band in our region, and all this is thanks to our teacher. Do not be afraid of teachers, they always wish you all the best and are eager to help their students. All of my teachers will always be in my heart, I am grateful to all of them, but that trip to the principal`s room I won`t forget ever.