This is very common and happens to a lot of people, I would say to everyone.
Not long ago, that when I wanted to buy something myself, I saw what was in my checking account and if there was enough I bought it.
You know you need to save so you don't know how to start
I knew, in the back of my mind, that I should be saving some money but I never saw it as a requirement at all. It took my time to get the idea of an emergency fund and that saving before spending is a big money saving that allows you to really live much better.
I was lucky that I did not get into debt in those years when I " spent " a lot of personal finances. If, unfortunately, you have not been so lucky, you know that the first thing you have to do is focus on paying off your debts, stop using your credit cards and start saving .
Starting to Save
Starting to save is nothing complicated . Yes, we know that we cannot depend on ourselves. Starting to save is starting a new habit and like all new habits at the beginning it costs a lot. Therefore, the key is to depend on ourselves to a minimum.
The first thing is to hire a savings account in a bank that is not ours. The savings account that we like best, man, if you have a better profitability, but now that is not important, you are creating the habit, focus on that.
Once the savings account is ready, decide an amount to save each month . It is better to use a percentage of your income, for example, 5% or 10% are very good to start.
I repeat, no matter how much you save, the important thing is that you establish the habit of saving.
Now set up an automatic transfer from your checking account to your savings account, for the amount you have decided.
It goes without saying that your bank should not charge you commissions ... if so, what are you waiting for to find another one that doesn't charge them?
Automate it, nor will you realize that you save. And little by little, month by month, you will have more and more money saved, without any effort.
In this first phase, do not worry about creating an emergency fund or setting savings goals. You only have one goal. Create the habit of saving. Focus on the idea of creating a savings base to establish the first bases of an independent financial future.
Then as time goes by go complementing the strategy . Find a savings account with good profitability, try to increase the monthly savings percentage, set goals for your savings, creating an emergency fund as a priority and gradually start investing.
What do you get saving?
What is the effect of all this? You make the most of your money . The one that is not used to pay bills and your monthly expenses, you use to save and invest and thus make your money, little by little, work for you.
The second effect is that now your financial situation is debt free and with a safety mattress against unforeseen events that allows you to sleep soundly and enjoy life much more.
If you are having trouble starting to save, follow these simple steps and you will be surprised by the results. Before you know it, you will be beginning your path to financial independence .