Automate your Assets with These Simple Money-Saving Tips
Personal Finance is always going to play an important role in one’s life. Learning to spend less and save more will give us the necessary peace of mind to have a stable life and thus improve our financial life.
Although there are countless resources available about how to save money and become more financially ‘literate’, many people do not dive into this advice.
However, you’re here reading this blog post, so I assume that you are in the market for some valuable information about getting one step closer to financial freedom.
Three simple money-saving tips to save more effectively
If you want to have sustainable financial success you need to master ways to save effectively.
Saving is important. Like it or not, it is a fundamental aspect to understand if you want to be in control of your finances. Once you understand the importance of saving, you become more in control of your financial future. The 3 rules for increasing your savings are plan creation, plan automation, and consistency.
- Create a plan
Creating a plan is critical to achieving any goal in life, and saving money is no different. It doesn’t have to be a colossal project filled with projections, diagrams and graphs. It should be something simple and straightforward. The method I use to create the plan has 5 fundamental characteristics.
The plan needs to be specific, measurable, attainable, relevant to your life, and have a time constraint.
To make your plan specific and measurable you need to clearly define where you want to go. For example, you can say that you will save at least $400 a month to be able to save at least 14 thousand dollars within 3 years for the purpose of buying a new car for cash. This is specific because there is a well-defined goal, and it is easily measurable because it contains a minimum amount to save each month.
While others continue to pay installments upon installments, you build your life.
Making your plan limited in time with intermediate steps is very useful because it makes you responsible. On the first or last day of each month, you should set aside a specific amount.
- Automate the plan
To increase the odds of saving each month, you should automate the process as much as possible. Automating your savings or even investments is simple. Whether you have a savings account or an investment account at the same bank as your checking account or use a savings account outside your checking account, you will have the option to set up an automatic transfer. You can set this as a monthly transfer of the amount you are willing to save each month.
Excel is the tool most used by entrepreneurs when they start. It’s very useful in the beginning, as it can be flexible and affordable, it is less relevant in the long term for a growing individual or even a company. Indeed, it is difficult to use it, automate tasks and share information.
Seeing your savings account balance automatically grow, and realizing after a while that the savings account itself can cover your expenses, for example, for at least 6 months in an extreme emergency, offers the account holder a bit of relief. Automation is key to being able to master your finances. Automating the management of your portfolio is an important alternative for all these structures that want to organize themselves efficiently on a daily basis. Since it has numerous advantages, it accompanies you in all the tasks that you can automate and collaborate with different actors: accountants, banks, services etc.
- Stay consistent
Consistency is key with anything in life from fitness to finances. By staying consistent with both your saving habits and your investments, you are setting yourself up for success in building your portfolio and creating wealth.
As you become more consistent with your financial practices, this will seep into other aspects of your life, thus setting you up for overall success as an entrepreneur.
- Create a plan: By defining a clear and concise goal, you are blazing a trail to be successful in your financial endeavors. This plan will help you stay on track and give you something to strive for every day.
- Use Automation: By utilizing automation (like what we offer at Quants Compete), you are putting yourself ahead of your competition. Automation removes human error and emotion, which allows for the best decisions to be made based on what the market dictates.
Stay Consistent: Consistency is the only way you will see results with your financial goals. By investing and saving month after month, and staying disciplined, you will reach your goals before you realize it.