Are you one of those people, constantly in lack of money and you do not know how to save? According to BBC Capital, your background could have a lot of influence on that.
It is said that the amount people save usually depends on their location and nationality. For example, residents from US are said to save one of the smallest amounts compared to other countries: they save only 3,2% of their income.
According to collected data, Australians usually save about 11% of their income but Chinese seem to have surprised researchers since they tend to save over 50% of their monthly income.
China’s culture has a lot of written and unwritten rules. One of the unwritten rules is for young and unmarried men to earn and save enough money for the apartment, as men are expected to have their own property by the time of their marriage. The other reason for a relatively extreme saving is Chinese welfare system, as there is no pension funds over there and that is why Chinese tend to save as much as possible for the future.
How Much Is Good Enough?
Specialists recommend to save enough money in case of extreme situation. In such case you have enough money to live for 3-6 months without any expected income. The amount can be calculated easily: you only have to check the amount you spend during a month for all your needs, multiply the amount by 0.9 (since an individual in such situation is expected to spend 10% less) and then multiply it 3-6 times (=months). The amount you get is the amount you need to save for a “rainy day”.
You might think that such amount, that you have just calculated, is impossible to save. At least not as soon as you probably would like to. Your decisions and abilities in this case, certainly, depend on how much money you earn, how many leases do you have, how do your bank statements look like and whether you are in a debt for someone. Yet it is not too hard: imagine you earn and spend 15,000 kr a month. The amount for the three months with limited needs would be 40,500kr (15,000* 0.9 * 3). Therefore, if you want to save the amount you need within a year, each month you have to save 3,375 kr.
Saving money is not too hard as you might think. Do it automatically. The best would be to have 2 bank accounts, out of which one would be meant for saving purposes. Make an automatic bank transfer to this account from the one you get your salary.
If you feel you cannot save that much money from now, start doing so with the small amounts: take away 100, 200 or 500 kr a month into a savings account. Psychologists claim that once you will notice the raising amount, you will feel the excitement and willingness to save more. If you get promoted and your salary has risen, do the same with the savings transfer: be generous to yourself and save a little more. Remember, that this account is meant for saving purposes when you have an extreme case in your life and do not touch it for entertainment purposes.
Based on article from Ekonomika.lt