Saving money is always important no matter which month or year it is. How to save more in 2020-2021? Each year the prices go up and inflation take place. It is undeniable that saving is one of the activities carried out to achieve financial independence in the future.
How to save more in 2020-2021?
Although it seems simple, but in reality this activity is quite difficult to do, especially for women. Most women are easily tempted by offers of promos or discounts on shopping so often they don’t think too long in spending their money. This is why women find it difficult to set aside some of their money to save. We will tell you about how to save more in 2020-2021 and you can also take help from it.
Financial independence is certainly not only dominated by men; women also want it. However, how can financial independence be achieved if women are found with hungry eyes’? Here are tips for saving for women to be able to achieve financial independence.
You should Develop a detailed budget
Running out of money without knowing the allocation is certainly very painful. Regret later surely there will be no use. Therefore, you must be very clever in managing finances. Not only can you buy items that are needed even desired, you can also set aside some to save. How to?
Preparing budget. A budget is very important to plan and track your expenses each month. Start by making detailed records of the salary or income you receive or have, then make a breakdown of your expenses, ranging from routine expenses such as electricity costs, cell phone credit or data rates, transportation, rent, and daily consumptions to the unexpected as reserves such as marriage donations, donations for friends or sick family, etc. You need to check and record all these expenses.
Arranging an emergency fund
In principle, saving is done as a way to achieve financial independence in the future, or at least to meet the needs during an emergency. Everyone is almost certain to experience or face an emergency, only the timing is different from each other. As we all know, that we do not always succeed in realizing everything that has been planned, because there are external factors that influence causing the failure of a neatly arranged plan.
Unintentionally the cellphone falls into pieces or is immersed in water so that it may be damaged and cannot be used anymore. Not only that, for no apparent reason suddenly a pet is sick. In addition, on the way to work, suddenly a motorcycle tire or car broke, so it must be replaced with a new one. Various emergencies should be anticipated so that you can still access funds easily without having to owe or pay with a credit card.
Therefore, it is important to establish a true emergency fund as an anticipatory step for emergencies that force you to spend quite a large amount of money.
Pay all debts as soon as possible
In order to save money effectively with maximum savings, you should avoid excessive debt. Therefore, debt can be an obstacle to achieve your savings potential. Not only you have to pay the principal debt, you are also burdened with high interest that must be paid during the current debt period. If accumulated, the amount of debt interest is often almost even greater than the principal debt. Dear, isn’t it? So, try to pay your debts as soon as possible.
However, if you have debt, then hurry to pay it. Prioritize payment of the biggest debt installments such as credit cards, mortgages, vehicle loans, or others. Although it feels quite heavy at the beginning, but it will feel light at the end. If you have more funds, pay the principal debt so that the interest expense you pay will be reduced.
You need not to borrow money for the projects where you have no control. When you don’t know about any business but still you invest then you bring yourself in great risk.