I have struggled a long long time with keeping my money, that means at the end of a month I never had any money left, I even had some debts and it was really hard to come out of this.
I think the main reason why I never had money left at the end of the month was because I was spending more than I was earning and I was living above my limits. This is a mistake I have done a lot before I realized that if I keep on going like this I could never save some money for later . That’s way the first rule for saving money is:
I. DON’T LIVE ABOVE YOUR LIMITS
What I want to say is, if you don’t have the money for something, don’t buy it. I always tell myself if I have to save money for a handbag for example, then I do not deserve it, because I think you should buy things you can afford immediately , if you have to save money for it first it’s above your average limit and you should spend the saved money for food , don’t starve because you need that bag! A. 3.000 euros bag won’t feed you even once, but you can live 6 months without starving with 3.000 euros !
II. SET PRIORITIES
Which leads me to my next point: you don’t need everything you want! I mean do you really need that pair of black pumps? Even if you already have 5 pairs of them? Or do you need new socks because every one of them already has a hole ( I was really struggling with that question one time ) . If you are already living on a budget you really need to set priorities! Think of what would you use more in your current situation and what product gives you more benefit ?
III. PUT SOME MONEY ASIDE
Putting some money aside saved my life when I was on the edge of my financials . It says that you should put 10% of your income away and save it for bad times. I never did that, there was always a fixed amount of money which was automatically transferred to another bank account so I can save it. And I also learned how to live with less money when I had less income in a certain month.
IV. LEAVE YOUR CREDIT CARD AT HOME
If you want to protect yourself from buying stuff ( like I do ) you should leave your card and your money at home. I wouldn’t say you should leave all your money at home because you never know if you may need it, but I never carry more than 100€ with me. Ok it depends on what I’m going to do outside, if I’m just going out to buy some milk or toilet paper , I don’t need 100 euros to carry with me. 5 euros are ok too. And you don’t tend to stay 5 more hours at the makeup department of a drugstore…
V. COOK AT HOME
I often like to go out with my friends, most of the time we are eating outside. Even when I had not much money left, I still went out with them for dinner. I still like to go out for brunch, lunch or dinner – but sometimes I like to cook at home for my friends too. You will not only save money, you also have more time to sit and talk you are more flexible.
I hope these tips will help you to save money for hard times 😉 . At least these methods helped me to save money and also not to get into the negative bank balance :D.