How to save money every month from scratch

Everyone sets the goal of saving money every month, the problem is starting to do it. This article therefore represents a “good resolution” to implement in the new year, without any more excuses or hesitations to begin with.

Here are the first steps to take to start from scratch in 2024 and learn to save money every month.

How much money should you save per month

Let’s start immediately by clarifying that saving is an attitude and not a question of money. Certainly, if your monthly income is limited and you struggle to make ends meet, it is clear that it will be difficult to set aside satisfactory sums.

But it’s all about getting into the right mindset. Even just €10 to put in the piggy bank is enough to change the psychological approach we have towards money.

Based on your income, the rule for calculating how much money you should put aside per month is the 50/30/20 ratio. In practice, only half of what you earn per month should be used to cover living expenses. I.e. rent, utilities, bills, petrol, medicines. 30% of income should be dedicated to leisure and leisure (including sports or clothing) and 20% to savings.

These are general indications, it is worth investigating further by discovering what the “pay yourself” approach to saving in the month consists of.

If you really can’t fit into these parameters, you can eliminate, for example, the expenses for the swimming pool or gym. Thus opting for outdoor sports or a treadmill at home instead. In the 20% dedicated to savings, any repayment of small debts and loans must be included.

In this case it is clear that the amount to be allocated to savings becomes even more limited.

How do you save with your monthly salary

Here are some useful tips to start the new year well, with all the best intentions to save a little money every month.

The decalogue to save money every month:

1. First step. As soon as your monthly income arrives, put something aside. Even a little to begin with. So, if you need it, you will always have it available, until the end of the month;
2. Take 50-60% of your income and divide the expenses. Thus including food and utilities, possibly the rent to be paid or the mortgage;
3. Now, write down the remaining part of the money. These are to be dedicated for example to the purchase of a new pair of shoes or some small entertainment;
4. Once resources are allocated, the goal is to save as much as possible on that projected budget. Obviously where possible. There is obviously little that can be done regarding a mortgage or rent;
5. However, when shopping at the supermarket it is possible. How many times, out of haste or convenience, have you purchased products that you know are cheaper elsewhere?
6. The same goes for paying bills. Make sure you have the best offer (changing every now and then is good) and paying maximum attention to saving energy at home.
7. Savings can also be achieved outside the home, obviously. Coffee at the bar must be an exception, when you meet a friend, not a daily habit, if you want to save money.
8. The same goes for lunch in the office or your children’s snacks at school, which you prepare yourself and not buy from vending machines.
9. Cook lots and lots of it to freeze. Go shopping at the local market and buy the vegetables on offer, so you can cook them and store them in the freezer.
10. Finally, adopting a minimalist and ecological approach to life, in addition to being good for us and the planet, also allows you to save money every month. Go on foot whenever possible, instead of using the car, recycle perhaps by selling used clothes, repair and not throw away, have the bare minimum, learning to eliminate the superfluous.

How to increase savings: some sacrifices are a must

Of course, thinking of seeing your savings grow without making sacrifices or foreseeing a few more sacrifices is not possible. Anyone who thinks otherwise is not realistic.

The point is that there are many families who, despite working and sacrificing themselves for an entire life, today find themselves without savings. Or, which is unfortunately even worse, with many debts to pay off.

The problem, in this case, lies in the lack of financial education. Which is also useful to impart to children from an early age.

There’s no point in crying over spilled milk. How can we fix it? The first step is to carefully evaluate every little waste, so as to start reducing the burden of expenses.

For debts, you can opt for a new loan that will pay off all of them. And then start again with a single installment to pay monthly, more proportionate to your budget, asking the entire family.

There is another way to increase your savings, however. Namely, seriously rounding out your salary. Everyone can contribute in the family, for example by selling second-hand clothes and objects online, offering themselves for after-school care for the little ones or as a babysitter for the neighborhood.

Read also: How to double your savings with the Warren Buffett method