Some make it a lifestyle, those who are born with a propensity to save, but in general it can happen to everyone to have to Save Hard. Saving Hard means saving a large share of your income for a certain period.
I write this post because having just bought a house, I have to save for at least a year to be able to afford to complete some things and have future peace of mind.
Much easier to save when you have such a concrete goal, but let’s see how to save hard, that is, a lot and quickly, without problems.
In this article
- # 1 – Identify where you spend?
- # 2 – Distinguish between expendable, reducible, non-eliminable expenses
- # 3 – Set yourself a savings goal and time limit
1 – Identify where you spend?
Do you know where you spend your money or do you still complain about not making ends meet and you don’t know where the money goes?
Mathematics is not an opinion and therefore also outline your expenses and see how they are spread out.
In most cases, the main expenses are:
- household expenses;
- expenses for food;
- leisure expenses.
2 – Distinguish between expendable, reducible, non-eliminable expenses
Obviously, for each one, they have a different impact but to save hard start classifying your expenses between:
- those that can be suppressed, that is, 100% eliminable and often superfluous;
- those that can be reduced by negotiation, changing a habit, or reducing consumption. I also recommend that you estimate the maximum reduction percentage;
- those that cannot be eliminated because they are fixed and impossible to negotiate (eg asylum fees).
With this exercise, first of all, you will realize that even the expenses that you have always considered fixed are not fixed and that therefore you can renegotiate the mortgage, save on shopping, on bills, move to a smaller house …
Secondly, you will have levers at your disposal to act on to reach the savings goal you set for yourself.
3 – Set yourself a savings goal and time limit
You now have all the elements to identify your maximum possible savings.
It is therefore up to you to decide how much you want to save and for how long.
I recommend an important note, pay everything you have saved into a separate account if you can to have the evidence and be able to verify at any time how effective your choices are! For example, you can use a deposit account for this purpose.
The shorter the time, the more drastic you can be in your choices. The longer is the more you will have to have a soft approach.
I do not embrace the philosophy of those who prefer a too minimalist and frugal approach to spending, I appreciate the advantages of consumerism and therefore I will not tell you to make soap at home, to make pizza at home, even if I often make it both to save both because it is more genuine.
So it’s up to you to save and be consistent with your choices and above all set goals and achieve them. Did you know that by starting to save early, you could retire at 40 and travel around the world? This is also a goal that you can achieve by saving hard.
To do this you will first have to start from the analysis of the existing, then paper and pen and track your expenses and decide what to eliminate to SAVE HARD, quickly and a lot and accumulate a wealth to be allocated to what you want.