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Not high salary can still be rich with these 9 small changes

Set some buying rules

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When it comes to shopping, if you don’t have any plans, you can quickly find yourself spending more than you need. All that unplanned spending will quickly add up and make it impossible for you to meet your financial goals.

To prevent that from happening, set some buying rules and commit to them. Scott Nelson, financial services expert and CEO of MoneyNerd Ltd, has a few suggestions:

Wait a week before deciding to buy to see if you still want to buy the product.

Every time you buy something, you have to sell something else.

Do it yourself if possible.

Borrowing from others if the need for use is small.

Wait for the discount.

Start with small savings goals

You may think that putting a little money into a savings account each month is not worth it, but over time it can definitely make a difference.

Personal financial planner Brannon Lambert recommends starting small and building up over time to avoid feeling overwhelmed by a seemingly unattainable savings goal.

“If you’re saving for a 20% down payment on a home, the thought of having to save $200-300 million can put you off before you even start,” says Lambert.

According to experts, you should start with small goals, a number that is within your means like 500 thousand for the first months and then increase to 2-3 million after that. Gradually increase your savings a little, a little bit and repeat the process, you will see savings gradually become a part of your life.

“The key here is to take action that you know you can sustain and then build it up further. It’s like lifting weights. You don’t start with a 50kg dumbbell, but you can definitely start with a 5kg weight and work up to heavier weights,” Lambert said.

Eliminate feelings of stress and pressure

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For some people, just thinking about saving can feel overwhelming. Michael D. Brown, financial coach and director of the Fresh Results Institute says:

“For me, to save successfully, you have to get rid of such emotions. If you are stressed with the thought of having to save, it will be difficult for you to save money.”

To avoid thinking about savings, Brown recommends automating the process. Simply by setting the mode to automatically send a certain percentage to your savings account every time an income is generated, you will save without thinking.

Find out where your money is going

If you think you can save but always run out of money at the end of the month, it’s time to find out where that money goes.

“Take a week to a month to document everything you spend,” says Tara A. Goodfellow, chief executive officer of Athena Educational Consultants, Inc.. You might be surprised at how much you spend on entertainment or how much supermarket trips really take up.

Bank account tracking

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After you’ve taken the time to discover how much you’re spending, don’t just stop there and forget about it. Otherwise, what you have just done will be in vain and you will forever be stuck in a precarious financial situation.

“Check your bank account often, several times per week, even daily,” says personal finance expert Brie Sodano. This gives you more clarity on where your money is going and limits impulsive spending.” You can also look for financial apps that help keep track of your bank accounts.

Review your budget

Goodfellow recommends reviewing your budget periodically to see if you can further cut costs. Maybe you’ll realize you’re spending a lot of money on services you don’t use or don’t use much like cable TV, landline phones, etc.

“You don’t have to cancel everything. Take the time to research less expensive options that still fit your budget. If you’re on a tight budget, don’t forget you can increase your income with part-time jobs or start your own business,” says Goodfellow:

Review your budgets regularly, making them a habit to help you stay on track with your savings goals. You can choose to review your budget weekly, monthly, or quarterly, whichever is best for you.

Read books about personal finance

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Many readers who have come here will immediately think that how can they read when there is not enough sleep time. However, what if you start with a low goal, commit to only reading 1 book, even 1 chapter in a month?

Every small change can absolutely lead you to great success. As reading becomes a part of your life, you may find yourself wanting to spend more time reading. Good personal finance books will help you stay on track with your savings goals.

Change your mindset about money

Your mindset about money is very important. Consider how you think about money every time you consider a purchase, and saving can be easier than you think.

Instead of thinking that an item only costs 100,000 VND, think about how many hours you will have to work to get it. How many hours did you have to work to buy that dress? Is it worth it? Real savings is not as difficult as many people think, it is important to have a good plan and discipline.

Save and save more

It’s good to save money using coupons or offers at shopping apps, but don’t stop there.

“Really save what you can through all the apps, coupons and discounts you have,” recommends consumer finance and debt expert Tanya Peterson. “Today, the money you save is often shown right on the receipts. Review it after shopping and immediately transfer your savings into a savings account.”

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