Ohhh…gee, it’s the second week of the month and my allowance is already gone…I’m sure this phrase brings back some memories for many of you. I’m sure this sentence evokes some memories for many of you. To this day, it continues to be a part of the daily life of many people, both teenagers and adults. But what is the real secret to saving your money? Beware, what you are about to read here you will not see anywhere else.
This technique is like a grandma’s recipe and is sure to save you enough money. But first, let’s understand how we manage to empty our money as soon as we have it.
By nature, human beings are attracted to what they don’t have, which is logical, isn’t it? It is therefore this attraction that pushes us to spend our money on anything and everything. It is also this same attraction that makes us believe that everything is or will be useful to us later.
Here, two months ago when I didn’t have my little secret yet, I caught myself buying a cute bowl made of wood. Today it is still there and I have hardly ever used it. Yet I must have found some use for it at the time I bought it. Another useless expense.
The worst thing is that you only realize it once you have nothing to spend. But since I discovered my little trick, everything is going well in my finances. Don’t worry, it’s quite simple to implement, but you have to be disciplined to do it.
Start by cutting your income in half. I told you it’s pretty simple. But there’s more to it than that. Once you halve your income, deposit a quarter of the first half into your bank account. This will be your savings.
Note that you can increase this percentage but it is best to have a fixed percentage for good tracking. What is left over from this split will allow you to deal with small contingencies. Your new pocket money is the other half of your income. Yes, less money means less expenses.