How can I save money

Saving Money

Many people are interested in saving their money; In order to achieve several goals of their own, such as building and enhancing their personal financial wealth, using this money in emergency situations, or establishing projects in various fields, and whatever the nature of the goal of saving money, it remains one of the important matters in the lives of many people, and it is possible to define Saving or saving money is a method that helps preserve money to benefit from it in the future instead of spending it.

How does a person save money?

Saving money is considered one of the basic activities that are part of people’s lives, whether they are school or university students, employees, or others, but many of them face difficulty in saving money. Because they do not know the appropriate way to do so, here are a group of ways on how to save money:

• Walking and using public transportation: It is to dispense with the financial expenses incurred by traveling by personal car, and to be careful about walking if the distance is short or using public means of transportation, such as buses, which have a low financial cost.
• Using smartphone applications for communication; Because it provides the ability to send messages and make free phone calls; The value of using these applications is not calculated on the bill for cell phone calls.
• Changing a personal habit; Stopping a specific personal financial habit contributes to a clear difference in your personal financial balance. Examples of these habits include:
  • Stop participating in the sports club and rely on daily walking.
  • Eat meals such as lunch at home instead of in a restaurant.
  • Borrow books from the library instead of buying them.
  • Share household items with neighbors instead of buying new ones.
• Do not buy new clothes to keep up with a specific brand; A person does not need to buy a lot of clothes all the time. Rather, he should wear the clothes that are in his closet and that can be washed. In order to use it again.
• Purchasing essential foodstuffs, Reducing the expenses incurred on purchasing from the supermarket, while being careful not to sacrifice the quality of the purchases.
• Open a savings account in a local bank; This account provides an effective way to save money, and also provides the individual or group of saving individuals with financial returns.
• Reducing energy expenses; Expenditures on energy consumption and electronic devices form part of personal expenses. Therefore, it is possible to use devices that have low energy consumption and are characterized by efficiency and high quality.

Reasons to save money

There are many reasons that encourage individuals to save money, the most important of which are:

• Saving for emergencies: It is a basic reason for saving money. It is important to allocate money for emergencies, such as: covering the repair of car breakdowns that occur suddenly, or paying money for an urgent surgical operation, or paying off debts resulting from the purchase of something such as housing loans.
• Saving for a trip: It is saving money for the purpose of luxury and entertainment. By participating in a trip to visit a country; For a personal vacation.
• Saving to buy a new car: It is saving money in order to obtain a new car in cash; Paying for the car in cash contributes to enhancing the ability to negotiate its price with the agency or company responsible for selling it.
• Saving for education expenses: It is an important reason to save money; As education constitutes the future of every person, many individuals seek to enroll in university studies or obtain higher degrees at the university, or many people may be interested in saving money for their children. So that they can study at school or university in the future.
• Saving for retirement: It is to ensure that money is saved with the aim of preparing for the retirement stage from work. It is possible to save a portion of personal income at a rate ranging between 10% to 15% as savings for the retirement stage.
• Saving to buy a house: It is saving money with the aim of obtaining a personal home. It is possible to negotiate its price when you have a suitable down payment to purchase it.

Benefits of saving money

Saving money contributes to providing many personal benefits to individuals, the most important of which are:

• Reducing feelings of anxiety; Saving money helps address any financial disasters a person may suffer, and also reduces exposure to many health conditions, such as depression and heart disease.
• Make people happier: It is the role of saving in increasing the personal money of individuals. Which contributes to making them happier; Especially when they find money when they need it.
• Creating personal wealth: It is the establishment of personal financial wealth based on saving money. By paying attention to financial investment linked to the capital resulting from saving.

Common mistakes when managing and saving money

There are many mistakes people make when managing their money; Therefore, they must try to avoid making any mistake that may lead to the inability to save money. Below is information about the most important of these mistakes:

• Not knowing the amount of personal money; Some people may not know where their money goes; Which leads to their inability to calculate its value, and as a result many people are surprised after learning the value of their bank account. The treatment for this error depends on making sure to verify personal expenses on a monthly basis.
• Spending more than the actual need: It is one of the problems that many people face; Which leads to their inability to save money, so care must be taken to reduce personal financial expenses. Because frugality and reducing expenses will not harm a person.
• Thinking about saving the remaining money at the end of the month: It is one of the mistakes that many people make; As they may not find any money to save at the end of the month; Therefore, it is important to allocate a sum of money to save before starting to pay financial expenses.