Topic: Tips to save my finances, to grow personal economy - page 6. (Read 981 times)

Create or do another source of income if the current salary you have isn't enough. You do the 9-5 job and then 7 onwards could be the time that you should be start working with another source of income. It's hard to look at the prices of everything right now due to the increased inflation rate and that's why one job is no longer enough. Everyone who's struggling to make ends meet has to do something such as doing another job or making a business or any side hustle.

sometimes I can't stop myself from spending money into everything I want. although I don't really need it. But the lifestyle sometimes makes me a person who is extravagant in managing finances. now i know the reason i always buy the thing i always want regardless of whether i need it or not. Turns out I didn't have a dream that I wanted to achieve. I like living aimlessly to a higher place. therefore I have always been extravagant. because I have no motivation to push me. but after reading the 5th point that is
I guess this is what I haven't thought about for a long time. this is what i'm missing. and from now on I will make dreams and goals to be achieved. so that I become motivated to save money. and I now remember that I once had a forgotten dream.

This is a good savings factor. It will engineer you to make savings available when you have goals to achieve and with the kind of goal, it will determine the amount needed to save and within the time it is needed. It is not only about saving that matters but also how long time that it took you to achieve it. Depending on the need for the savings, you can have different levels of savings and proper for the changes that will occur in your finance or challenges that it will involve.

While these points may help you save a pennies on a dollar but in the long run you need to invest some of it . Like investing in Mutual funds, ETFs, Index funds, etc

Before you get into them, you should dedicate a good amount of time to understand what "investment" really means and only then will you be able to comprehend the associated risks. Start small but don't waste time.  Just don't think of crypto as reliable investment options in today's market Check out this sub too https://www.reddit.com/r/Bogleheads/

Look into various reliable funds in your country too. And buy a good health plan with life policy(IF you a plan to have kids or already have).

Good luck!

Saving money and investing should be more balance because it is still ok to have at least a months of savings for your expenses so when the emergency happen, you have the most liquid money to get and pay for that emergencies. Investing is really made for the purpose of making money and beating the inflation, its really advisable. Financial planning is also important, we should take financial advices and be good at it.

Aside from the given tips, savings must be spent on investment.  We cannot grow our personal economy if we keep hold of our savings.  Savings is good because it can save us during time of financial distress but it just stops there.  And if we rely on our savings for our personal economic growth, it will take time because our savings is very limited.  Using these savings to fund our investment will hasten the growth of our personal economy because there will be another source of funds where we can take a percentage for our savings.

In my country we do not get issued credit cards but here is a relatable version - Pay off your debts and stay off loan apps. They are two financial blood suckers. Hardly a person who is in debt is able to grow his finances or become financially free who is in debts. I have seen folks go broke once they received their monthly salary because they use most part of it to settle their debts. And at the end have nothing left to save. Living from hand to mouth.

In my opinion, the most unintended thing that you regret at the end of the month is the excessive socialization that leads to activities that make you spend more than usual, such as visiting relatives, friends or adopting a day for entertainment. You may have paid a lot without knowing why you paid that money.

Make saving a habit and not just a way to achieve some surplus money to invest or build something new. Even if you have no reason to save, save and donate.

That is the most effective way not to run out from budget, only spend less than your income so that you can still save some of your money. Although it’s hard when starting and seems boring, but if you want to manage well your finances and save some of it, you have to sacrifice first your luxurious lifestyle as it won’t be good for yourself in the long run. After all, once you gain financial stability, living life in luxury won’t never be a problem anymore as long as you are not overspending from your own source of living.

Due to inflation and having changed to a relatively lower paying job, I've been struggling a little more lately. The best principle in saving, as OP suggested, is to think twice before buying something. Ask yourself if you really need it and if you're planning to actually use it.

Personally, I ask myself if I'm going to be needing it (a tool for instance) in the 6 upcoming months and if I could possibly find other alternatives in the future, providing that I end up needing it. That way, I've managed to evade some purchases, for instance in Lidl, which often sources tools and you're caught in the marketing trick of it not being always available for sale.

Wise investing, smart spending, and self-discipline are the keys to pursuing these tips easily. There will surely be hardships in managing our finances since temptations are everywhere but we have to get through all of them to have financial freedom in the future. As much as possible, we must allocate enough funds from our salary for investment. Through that, we'll be able to prepare for a profitable future.

I'm a very frugal person who has his expenses sorted out weeks before receiving my salary. I started as a dude who waits tables for a part-time job while studying for my degree. My salary is way less than you, and I am still somewhat lucky since back then I'm still living on my parents' house. The bulk of my salary goes to my tuition and school expenses, and I always have $5-$10 change on that salary and promptly kept that. I intentionally avoid going out with friends even though I wanted to and perhaps that saved me a ton of money in college.

Fast forward to now, I always keep in mind that I only have X amount of salary that I'll be receiving every paycheck, even though I actually am receiving way more than that. It stuck on me and just kept on saving and saving and ignored the temptation to spend a lot of money in one go even if I can do that. I still have my iPhone 4s in 2021 that I bought on 2013, and switched to an iPhone 11 that my workmate sold to me at a loss due to an emergency. If only the emails and the internet is working fine on that phone, I would still keep it and not buy the iPhone 11 my workmate offered me.

Mindset is also really important if you want to grow your finances. A lot of us tend to start being frugal and stop mid way when we don't see results immediately. Just keep on saving and ignore the temptation around you. It'll reward you handsomely when the time comes.

Having this kind of financial planning is a big thing, this is your big step towards financial freedom and if you are discipline enough to follow this timeline, most probably you will succeed. Honestly, this is not easy and it will be more challenging especially if you didn't practice delayed gratification. I've tried this many times and failed all the time, right now I'm still trying to get things back by first paying all my debt, and hopefully can be able to achieve financial freedom once again. Finance planning is very important, it can take you to greater highs, and a happy life.

Many good tips here. Making sure that you save and invest your savings in assets is never wrong. What kind of assets could be trickier but preferably in something you have some knowledge in. Could be crypto, stocks or real estate. If you havn't read "Rich dad, poor dad" it could be a great introduction to a mindset to grow your personal economy. Very basic but still potentially helpful.

Invest a little money for your health as well as for your vacation because you should not only think about the possibility of getting rich in the future about your investment while your health and psychology are compromised. These two things are very important to think about because the body also needs healthy nutrition and the brain also needs relaxation which does not always have to think about money and money.

It's true to live a simple life, but you don't have to cut too much of your life just to prioritize investments. 5% to 10% of your total budget is also a good range for you to invest as long as it is consistent with it. So don't worry too much about it because life isn't just about money.

. . . One very important aspect these days one should be counting on - extra income sources or multiple income sources. Worlds changing fast, things are getting way costly but our salaries don’t get hiked in that proportion.

In fact the living expense which used to be let’s say $250 per month two years ago is now more than 300-350 bucks this year for sure.

Now, it’s impossible to cop up with this inflationary situation because of the same reason.

This is why it’s more of our time and multiple income sources which can sustain good life.

I see many of you talking about frugality, when increasing income is much better in my view. Then you can maintain a certain lifestyle and save more easily.

In fact, I would say that frugality comes from a poor person's mentality.

Since the creator of the thread was talking about personal finance and growth, although he then focuses on frugality, I would say that getting as high as you can in your profession, which will earn you more, considering changing profession if you see that in your current profession there are not many prospects for growth and having side hustles that give you extra income are good ways to try to earn more and not focus on frugality as much as on growth.

An additional tip I got was to stop paying for monthly subscriptions if you can. Some of them aren't exactly needed or there's a better and cheaper alternative, they're more of like a premium kind of thing imo. I also constantly DCA out of my salary so I can constantly invest so as to not let my money just, well, sit there on my bank doing nothing. I'm starting to look for possible ways to invest in properties/land, kind of like a faraway thing but I'm preparing for it now.

Facts.

The fifth point is especially important, many people I know fall into the trap of comparing themselves to their neighbors and often buy stuff they do not need or want just because their neighbors did it, also people need to stop buying brand stuff, luxury cars and all kind of unnecessary stuff, a regular car fulfills 99% of the needs you may have for a fraction of the cost, and the same is true for the majority of luxury goods we can find when compared to their regular counterparts.

Frugality, making savings is literally what most do thinking that they are secure because they have money. But I tell you that there is nothing will happen and grow/multiply your money in this way, investing is the most ideal when it comes to this.
You can have your financial freedom and reach your goal in business or investing but yes, you have to face the risks which is one reason some people afraid. I'm not going to say that you have to unless you are willing to do so. Have to think about it several times before deciding.