Many people find it difficult to manage monthly salaries, so many people run out of savings before the end of the month. So that you avoid this incident, you need to know how to save money from salary.
The way to save salary money is not just by opening a savings account. It may be that saving is one of the things that is easy to plan for, but it is often difficult to realize.
How to Save Money from Salary
There are many ways you can save money on your payday. For those who want to know how to save payday money, here are 10 tips you need to know.
1. Make Monthly Budget
The first thing you should do to save money from your salary is to make a monthly budget plan. You can divide monthly expenses according to primary and tertiary needs.
Primary needs include food, electricity bills, home and motorbike installments, and so on. Meanwhile, tertiary needs, for example, are budgets for traveling, shopping, and other fun activities.
2. Pay Bills Immediately
You should use the money from your paycheck to pay your monthly bills. Do not delay and immediately pay the bill in advance.
Some of the priority bills, such as electricity and telephone bills, various installments, etc.
Payment of bills at the earliest time will keep your daily needs from being interrupted. Thus, you can more freely manage other monthly expenses.
3. Set Aside Salary for Savings
One of the wisest ways to save money from salary is to save money. Maybe you are used to set aside your salary for savings.
However, now you have to be more serious, setting aside your salary for savings before using it for your daily needs.
It can reduce unnecessary expenses. At the same time, it prevents you from consumptive behavior.
4. Create Daily Financial Reports
You not only need to make a monthly budget but also make daily financial reports. Like a company, you need to make neat family financial reports.
Save the shopping receipts that you get every time you shop. Record all your expenses each day.
This method can help you find out where the money is being spent and help you analyze non-priority items to buy in the next month.
5. Have More than Two Bank Accounts
To make it easier for you to make daily financial reports, you should have at least two bank accounts for a shopping account and a savings account.
A shopping account contains money transfers for daily needs, from receiving salaries, paying bills, shopping, etc. Meanwhile, a savings account is used to save your monthly salary.
For the amount of salary that must be saved, you must determine the minimum amount (what percentage of the total salary).
In practice, imagine that what you pay is a mandatory bill that you must fulfill every month.
6. Use Credit Card Wisely
How to save money from salary can also be done by using a credit card wisely. The careful use of credit cards can also help you manage family finances.
Every credit card holder will usually get special offers, such as product promos. You can use the promo to buy the necessary items.
Or, you can use it to pay your monthly bills. To avoid fines, you should immediately pay off your credit card bill.
7. Buy Only the Items You Need
You can try to save money from salary by buying goods selectively. This means that you only buy the things you need.
It is important to ask yourself, “Do I really need what I am going to buy?” Also, ask yourself, “Can I buy it now?”
Those questions will help you decide whether the item to be purchased is really needed at this time?
To meet household needs, you also don’t have to buy new things. You can buy used items, but they are still suitable for use.
This will really help you start living frugally. Some items that can be bought secondhand are furniture, tables, chairs, and other household furniture.
8. Making Investment
For excess money from your monthly salary after being used for daily needs, you can use these funds to invest, for example, by joining insurance or mutual funds. You can also invest by buying gold or jewelry at a high price.
Investing is different from saving. Money in savings can be withdrawn at any time. On the other hand, your invested money cannot be withdrawn all the time. Saving money by investing is more profitable for you in the future.
9. Looking for Additional Income
If you are an employee with a small salary, then looking for additional income is a must. Looking for a side job is also one way to save money from salary.
There are many additional job options, for example, being a credit seller, freelance writer, selling online, and others. The condition is that the side jobs must not interfere with your main job.
Surely, the more additional income you get, the more salary money you can save.
10. Making Comparison
Making comparisons between expenses and budgets is also an effective way to save your payday money.
The purpose of this comparison is to find out whether the amount of expenditure is following the budget made. Between budget and expenses must be balanced.
If there is an imbalance, there is something wrong with your calculation. You must immediately revise or recalculate.
You must value your own hard-earned money by saving on your payroll. This article on how to save money from salary can be a reference for you to appreciate money more by using it wisely.