Learn How to Save Money Without Cutting Your Spending.

Nowadays, there is still a false idea that to save money, we have to cut a large part of our expenses. Therefore, cutting additional expenses will not give us enough money to save and invest. Then, Learn how to save money without cutting expenses.

However, it might even make a small difference. But the order of the factors is completely wrong. However, we should not cut expenses to have money left over to invest. We must first invest to make money spare and have even more money to invest.

That's all a question of mentality and priorities, about how we view our money. However, if you are a little confused, don't worry. In this article we will talk everything about this subject. So, here's how to change your mindset and start save money, without having to make a drastic cost cut. Follow along!

How to Save Money – The Basic Principle of Everything.

Have you ever heard of a book called “The Richest Man in Babylon?” This book is excellent for those of you who pay the bills, and at the end of the month, can't save a single penny. However, the book was written a few thousand years ago. But the basic principle for making money spare is still the same.

Therefore, the book mentions that we should pay ourselves first and then others. Have you ever noticed that you pay your children's school fees, the energy bill, the car payment, and at the end of the month, there is often no money left? The question is not whether you earn a little or a lot, but rather, what you spend your money on and how you manage your finances.

However, the basic principle to start saving is to make it a priority to save a portion of your monthly income, before paying anything else. Nowadays, there is still a false idea that to save money, we have to cut a large part of our expenses. Therefore, cutting additional expenses will not give us enough money to save and invest. So, learn how to save money without cutting expenses.

So, first you set aside a certain amount of your money to save and then worry about paying other expenses. With this, every month you will have saved a portion of your salary or income. This way, you will be able to save your money, as you have made this a priority.

How much do I need to save from my income?

Not only the book we mentioned above, but several other financial experts, recommend that you save at least 10% of your monthly earnings.

However, the other 90% pays your expenses or whatever you need to do. But the more you save, obviously, the better.

So, to be more specific, the suggestion we give is the following:

• 10% to pay yourself and ideally invest that money.
• 20% for debt payment.
• 70% to keep.

Find out how to manage expenses and needs.

It's very important to talk about this, as you may now have several questions in your head.

So, you may be wondering, “I paid the bills and have nothing left, how am I going to be able to separate the 10% from my earnings? Won’t we run out of money?”

So now let's get into the topic of your mindset towards money and what you think. Well, sometimes we have the impression that we only do what we think is necessary and that everything was necessary.

However, if you stop to think, you will be able to make a shopping list that you didn't need to spend. Therefore, you can earn 3 thousand/month or 30 thousand/month, the basics will be the same for practically everyone: food, housing and health.

However, the accounts involving these 3 items above are in fact our priorities. The difference in expenses between the two salaries is desires and purchasing power.

For example, those who have a salary of 3 thousand reais can spend their entire salary going to the cinema, traveling on the weekend, buying goods, etc. However, those who earn a salary of 30 thousand can commit their earnings to a big car, a much bigger house, international trips, etc.

The big thing is, it doesn't matter how much you earn, it's how you spend your money. So, learn how to save money without cutting expenses.

Debts and Credit Cards – Be Very Careful!

At one time or another, we end up falling into this credit card trap with interest and late bills. Because, a late invoice can generate a real snowball, with interest and debts difficult to get out of.

However, if you find yourself in debt, we have some advice for you. Set aside at least 20% of your earnings, month by month, to pay these debts, consistently.

Currently, banks are much more flexible with payments, and it is possible to negotiate debts and have easier payments.

Therefore, these guidelines that you are following have been tested by several people and achieved success over a certain period of time. Although we know it is not an easy task, but it is totally possible.

Another important point, for those who have debts, it is almost a rule that they do not use a credit card for future purchases. So, organize yourself to make payments in cash, at least until you are financially organized.

For those who don't have debt, the tip is the same. Prefer to pay in cash, to get rid of interest on credit cards, loans and financing.

Apply your Money So It Multiplies.

In addition to all the tips we gave here, the ideal is for the 10% saved to be invested to multiply. This is especially true if you have medium and long-term goals.

Therefore, there are several investment options for any and all investor profiles and investment values.

So, saving money for a specific purpose, and thinking about investment is of fundamental importance.