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How to save money

Consumerism is becoming less and less fashionable. Sustainability and saving are becoming the main guiding principles of each and every individual as well as society as a whole. Regardless of whether natural resources, clothes or personal finance are in question, each of these categories must be preserved, saved, expended wisely and responsibly. What is the easiest way to do this? One possible method is to adopt and practise good habits.

When it comes to money, no matter how much you make, it is always advisable to prioritise items on your shopping list, i.e. to manage your budget rationally.
The following four tips will provide answers to the question: How to save money?

The answers boil down to lists, because, when you put your income and expenditures on paper, you will have a clear picture of your options and you will be able to set your plans within a reasonable framework.


1. At the beginning of each month, make a list of all the anticipated monthly expenses. 
This list will by all means include groceries and bills, probably a present for someone’s birthday and one or two trinkets for yourself, your partner, children or pet. When all the expenses are added up, you will know how much money you need to put aside for your most important expenses.  


2. During the next thirty days, make a note of everything you spend money on. 
On a second list, note down even the smallest amounts of money you spend, because they are the most common answer to the one question we ask ourselves when we leave the supermarket: "What did I spend so much on?" At the end of the month, add up all the expenses, take a good look at what you bought and subtract from this amount, all the things that you don't really need (they are probably laying unopened at the bottom of the refrigerator, or hanging in your closet with the labels still attached). This is the amount that you can actually save per month - if you make the decision not to spend money on unnecessary things. Even better, use the internet or mobile banking and for one month, pay for everything by card. All transactions will be recorded on your bank statement and you will know exactly where, when and how you spent your money.


3. Set a minimum amount to be put aside each month - and forget about it entirely. 
Now that you know how much you need on a monthly basis and how much you don't have to spend, set aside a certain amount corresponding to your income. This will be your monthly savings. Try not to tap into that money, and when the opportunity presents itself, feel free to add another dinar or two to it. Perhaps the easiest thing to do would be to set up a standing order with your bank, just like paying your loan instalment.


4. How to protect your savings?
This brings you to the last step, where you should decide how to protect your savings. In any modern society, the safest and most reliable method is to keep your savings in a bank. In addition to security, this gives you the opportunity to allow your money to earn for you, by means of interest.  

Bonus tip

How to choose the right bank to save with?
Check the interest rates and term deposits they offer. This decision-making process can be made even simpler if you opt for a flexible savings model which allows you to keep the money in a separate account so you can’t spend it ‘accidentally’, yet it’s always available to withdraw if any unexpected expenses arise (e.g. car repair).