Assalamualaikum, I’m Syira. So, for today’s topic, we will be talking a lot about MONEY. Throughout our life, money have always been a sensitive topic. Some people even get offended by the word “money”.
Before I dive in deeper into how to save about $10,000 a year, let’s really understand what makes us harder to save money.
As for me, i have always been mindful and intentional about my spending, like every time i am about to buy something, i always ask myself, “Do I really need it?”
Here are the things that I have to stop buying to save more money!
Are you a fan of GrabFood/FoodPanda?
We often too busy to cook or prepare food, so the easy way out? Is to open the app, and order food that you want.
Have you experienced this after eating?
‘The food is not even that nice’
‘This food should be a lot cheaper’
Because, for me.. Honestly, the food that i have ordered, only 15% is nice and delicious. And cooking is way cheaper. Let’s say if you don’t have the time to cook food, you can always search in Google simple recipes that is surprisingly take only 15 minutes of your time.
You can order groceries to be delivered to your home if supermarket is really out of your way.
Cutting cable? What does it mean?
In some studies that i have read online, cables that still plug in the socket still have electric flow that more or less affect your bills.
So, take off the plugs that are not in use! Turn off the lights. Do you really need to turn on the aircondition or use maximum speed for the fan?
So, you should know which plug to take off and which switch to turn off.
Stop buying things that you don’t need!
Do you really need that new phone casing? Do you really need to buy the things you have been adding into your Shopee Shopping Cart?
Most of the time? You never really need it. You want it, but you don’t need it.
Think of the money you can save without buying those things.
That is top 3, most major things that we have to really focus on. You will definitely see the difference when you take care of these 3 things. I’m not saying that you shouldn’t buy anything for yourself. Just really check properly if you really need them because being broke ain’t cute!
So, how to save money?
When you have low income of big responsibilities, you might feel that it is impossible to save money. I read this quote somewhere, but can’t remember where..
“ There is a limit to how much you can save, but there is no limit to how much you can make.”
Some of these methods might be suitable for you while to some won’t.
#1. 50/30/20 rule.
The 50/30/20 rule is one of the popular methods out there because of its simplicity. Knowing how to budget your money will benefit your financial situation in so many ways.
So, what is 50 rule?
50 rule is 50% of your budget that is used for your needs, such as:
You know what is the most difficult things in these 50 rule? Differentiating between needs and wants.
Next, is the 30 rule.
30 rule is 30% of your income for the wants.
We are normal human being, we have our wants too. Make sure that your wants must not exceed 30% of your income!
- A holiday trip
- New phone
- Eating in restaurant
Some people, really save the 30% income for months and spend it on Sale Month such as Christmas Day!
The last part of the 50/30/20 rule is 20 rule!
This is actually the most important rule if you want to save $10,000 or any amount for a year. 20% of your income should be for savings!
We never know, when we need to use savings. It could be for emergency, or something that you really need to invest in.
So never skip the 20 rule!
I hope this helps whoever needs to save money. I did it, and i am proud of myself so much!