Simple Tricks to Save Almost 20% of Your Salary – Straight From Financial Experts

Advisor October 8, 2020

Coronavirus has created a financial crunch in the global economy. Financial planning has become more important than ever in the current times. Let’s admit it; the old school methods of saving such as cooking your own meals, cutting down on transportation, and purchasing smartly aren’t sustainable any more. Each of us needs just a little extra effort if we really want to save well.

Unsplash | Saving is an art and you have to put in effort if you want to save over 20% of your income

But how can we do that? Well, it turns out there are a few things that still work.

We’ve consulted financial experts and come up with 4 sure-fire tricks that can help. Check them out here.

Cut on luxuries

Have you heard of something called a lifestyle creep? It’s the vicious circle of spending more and more with an increasing income. And TBH, it happens with everyone. When you’re earning well, you don’t realize when spending on luxuries becomes a habit.

If you want to exit the circle, you’ve got to work on reversing it. Focus on saving first and spend from what you’re left with. This strategy will help you accomplish your saving goals the quickest.

Read – Understanding & Avoiding a Lifestyle Creep

Research can save you big bucks

Probably one of the most pinching texts is the one that says, “Your account has been debited with $xxx.” Such messages become common when you take random subscriptions. Did you know that Americans spend an average of $237 a month on subscriptions? But we’re not judging; we’re all guilty of that. The problem is that we know this but we still don’t change things.

Unsplash | Cutting on unnecessary luxuries and expensive subscriptions can be a great start

Resisting isn’t easy, we get it, but you should always remind yourself that every cut in expenditure translates into saving. It doesn’t mean you should cancel all your subscriptions. All we’re suggesting is that you should research to find platforms that provide similar services at lower fees. Yes, these small savings matter.

Do you get paid biweekly? Here’s what you can do with the extra checks

For biweekly earners, there’ll be two months in a year when they’re handed more than three checks. Experts suggest saving the extra one and using the other two as usual. Or you could also make recurring cuts from your weekly checks.

Read – Why People Love Getting Paid Biweekly

Handling bonuses

What did you buy the last time you got a bonus? If you’re like most people, it would probably be new shoes or clothes. You should know that it won’t pinch you when you’re buying, but it will when you start falling short of money.

So why don’t you plan what to do with your bonuses beforehand? This will make things much more comfortable. You may not be able to save all of it, but at least 40-50 percent can go as savings, right?

Unsplash | Resisting the urge to shop with the extra amount you earn can make all the difference

To give a final word

The guilt of spending the extra amount which you could have saved will remain forever unless you work on it now. The moment you start saving more and spending less, life won’t remain a mess. So what are you waiting for? Start planning.