The benefits of saving early and how to start

• What are the benefits of saving money?
• How can you start saving cash?
• The best tips to start your year off on the right foot!

With all the spending over the holidays and the bills coming in January, saving may be the last thing on your mind. But, in light of the current inflation woes, it is important to start thinking about increasing your savings so you can cover your expenses later.

But how can you avoid the temptation to spend your holiday bonus or that end of year raise? It is actually very simple and MundoNow has the best advice to help you build your savings for a brighter future.

WHAT ARE THE BENEFITS OF SAVING?

Although saving is sometimes considered a sacrifice, it is actually easier than it seems. The benefits are infinite and one of them is that you will have money to pay for unexpected expenses. So how else does it benefit you?

According to BBVA Bancomer, saving can have benefits such as: entrepreneurship, financial security, the ability to invest. It also helps you with discipline, because it takes self control to moderate your expenses and stick to a budget.

How can you figure out your weekly expenses?

According to Bank of America’s article, Better Money Habits, one of the first things to take into account is, «To start saving money you need to determine how much you spend.” Take the time to monitor your weekly and monthly expenses.

Whether it is a cup of coffee or a roll of toilet paper, everything must be written down. This step will help you start a savings plan that you can stick to without feeling like you are giving up those little luxuries.

How can you start saving?

Apps can help you figure out your daily expenses, then determine the total for the week and, consequently, for the month. Even the smallest purchase must be noted. The next step is even easier, since it’s time to create a budget.

In the budget that you are creating — after determining your expenses — you must look at your expenses compared to your income. You will have to make a category in your budget exclusively for the amount you want to contribute to your savings.

What if it you don’t have extra money for savings?

By identifying your daily, weekly, monthly and yearly expenses you already have a clear understanding of which are beneficial and necessary and which you could eliminate. Now, you can figure out what to cut back on.

Better Money Habits recommends that expenses such as “entertainment and eating out” be identified. These are not necessities and the money could be put into savings. Just include the amount you were spending on entertainment in your savings budget. Filed Under: Benefits of saving early

Why is it difficult to save?

It may be difficult to save in the first few months but having discipline can help you «stick to a plan and save as much as you can and when you reach your first savings goal,» according to BBVA Bancomer. With the intended objective in mind, it is time to dive into the plan and remember the benefits of building a savings.

Therefore, it is important to have a savings goal and thus establish why you want to save. People who are clear about their desires and savings goals will have an easier time sticking to their plan, according to Better Money Habits. In this way, 2023 will be a year when you can afford luxuries such as a trip to Europe or the Caribbean. Filed Under: Benefits of saving early