Normally, individually and also as a family, we set savings goals at the beginning of the year. However, these early fall weeks can also be marked by the need to put our finances back in order. Either because we see that we are not meeting the objectives that we had set, or because we want to save a little more for the arrival of Christmas.
In addition, starting good savings habits in these final months can serve as a boost for the next year. Here are some tips for saving between now and the end of the year.
Rethink priorities and apply zero-sum budgeting
If we set our savings goals now ten months or more ago, it is very possible that they have changed. Or that other priorities have emerged on the horizon.
To do this, starting by rethinking our budget, knowing exactly how much we earn and how much we spend each month, and assigning a specific budget to each expense and each objective – for example, saving X money for Christmas gifts – can be a good starting point .
To this we can add applying the technique of ‘zero sum’ budgeting , which means assigning all our income to a purpose, until there is a remainder of zero. In this way, if we assign, for example, 50 euros to savings at the beginning of the month, we already know that we do not have that money, and therefore it is more difficult to spend it.
Find formulas to save more
To save more on these dates, we can review subscriptions that we do not need, make more plans that involve eating at home or, simply, when reviewing our budget, attack those expenses that may be exaggerated.
To do this, review the bank statements for so far in 2021 and, from most to least important, classify the purchases that we regularly make and that are not essential.
Assign a fixed savings percentage
It is advisable to save between 20% and 30% of our income , but it is true that there are circumstances that sometimes make this impossible. In any case, knowing how much we can save and setting aside this money – as if we were paying ourselves – at the beginning of the month, can be another important change in our routines.
Having a separate bank account for savings with scheduled transfers is a good starting point so that there is no possibility of thinking about it.
If you feel like it, take a savings challenge
This formula is somewhat more aggressive. In her book ‘The 21-Day Financial Fast: Your Path to Financial Peace and Freedom’ , financial adviser and Washington Post columnist Michelle Singletary describes “financial fasting,” a kind of ‘economic diet’ that promises to end the bad guys. spending habits, create a plan to get out of debt and put yourself on a better financial path for the future. And set to be 21 days without spending any to save.
During financial fasting, no unnecessary money can be spent in any way. Unless it involves food, shelter, or any other essential survival expense, spending discipline should prevail during those three weeks.