Saving 50 Million in a Year – Many of us may already have the intention to save for different purposes, such as the cost of education, health, buying a new vehicle, and so on.
The importance of saving is of course to anticipate unexpected future needs. However, is it possible to save 50 million in a year? Seeing a lot of nominal sometimes makes us pessimistic to start saving.
Yes, 50 million is indeed a lot. But with a clear and specific goal of course you can make it happen. Here are 8 ways to save 50 million in a year that you can try!
8 Ways to Save 50 Million in a Year
There are many ways to save daily, weekly, or monthly that you can do. However, sometimes it is not easy for most people to do. You have to consistently manage money well according to your needs.
If you still find it difficult to get started, then you need to deal with 8 ways to save 50 million in a year to achieve the target below:
1. Use the 50/30/20 Budgeting Method
Elizabeth Warren, in her book “All Your Worth: The Ultimate Lifetime Money Plan” introduces the 50/30/20 budgeting method to manage finances so that they are not wasteful. Its simple way of working allows for great success.
You only need to divide all the income you receive into 3 parts, namely 50 percent for basic needs, 30 percent for entertainment, and 20 percent for savings. The following is an example of calculating the amount of savings in a year using the 50/30/20 budgeting method for an income of 15 million.
- Monthly income: 15,000,000
- Basic needs : 50% x 15,000,000 = 7,500,000
- Entertainment : 30% x 15,000,000 = 4,500,000
- Allocation for savings : 20% x 15,000,000 = 3,000,000
- Total savings: 12 x 3,000,000 = 36,0000.00
It can be seen from the calculation above, you have managed to allocate money for savings of 36 million rupiah. Pretty good, right? However, to achieve the target of 50 million rupiah in a year is still less than 14 million rupiah. So, how to deal with it? How about you reverse the budgeting method to 50/20/30, so that 20% is for entertainment and 30% is allocated for savings?
By allocating 30% from your monthly income for savings, you will earn 4.5 million rupiah per month and 54 million rupiah for 12 months. All of this can be done easily if you are determined and consistent from the start, right!
2. Reduce Non-Priority Expenditures
Referring to the calculation method above, your income that will be allocated for entertainment will also decrease. Though maybe your income has not reached 15 million rupiah per month. But, don't give up and be pessimistic just yet, because you can start reducing expenses that are not a priority. By reducing expenses that you feel are less necessary, you can help you achieve the targets you want to achieve, you know!
If you often eat snacks and get together with friends, then now you have to reduce it. Usually you get together 3 times a week with an estimated expenditure for food, drink, and transportation as much as 700 thousand. Make a gathering with friends once a week with an expenditure of 150 thousand, you have managed to save 550 thousand.
You can also bring food and drinks from home when working. That way you can reduce expenses that are not a priority and allocate your income for savings every month.
3. Find a side job
Look for a side job that you can do outside the working hours of your main job. Don't just rely on your main job as your only source of income. Save the results from side jobs every week, try to get 1 million per week to make 52 million in a year. You can try a side job as a writer, entrepreneur, dropshipper, and so on.
4. Take advantage of Promos and Discounts
A saving step that you can take is to take advantage of promos and discounts at every opportunity. Often after a day of activities, releasing fatigue is what is needed to recharge energy and enthusiasm in the face of tomorrow's activities. You can do many things for healing, such as online shopping, hanging out with friends, watching movies, eating with family or a partner.
Of course, there is no problem to clear your mind from the tiredness of daily activities that have been passed. To save, you can take advantage of every promo and discount provided by the merchant or marketplace. Find out in advance what promos and discounts are being offered, so you can save money and allocate the remaining money for other things.
5. Sell Items with Garage Sale
Instead of letting it pile up at home, try to start looking at the closet or around the house, whether there are items that are no longer used or rarely used. Only sell items that are not used but are still suitable for use. Once you clean the house, you can make a garage sale one of the additional income tips to save 50 million in a year.
6. Limit Online Shopping
The ease of accessing all needs through online shopping, makes this a must if you want to save 50 million in a year. All needs from secondary such as clothing to primary needs such as rice and other foodstuffs are now available through online shopping.
The convenience of online shopping makes you a consumptive and crazy when you see the items you want to buy. Therefore, begin to distinguish needs that do have a higher level of urgency and which are just wants. That way, you can limit yourself from the habit of making unnecessary expenses.
7. Use a Financial Management Application
Often because you are too focused on saving, don't let your finances fall apart. Keep a record of all your income and expenses so you can track what your income is spent on.
Don't be confused anymore to record your expenses and income. Use the Whiz application, a financial application made specifically to help you manage your finances. Starting with Whiz, your financial records are neat and organized.
8. Create a Table of Saving 50 Million in a Year
Bored with the usual way can also make you lazy to start saving, you know. You can try starting by creating a table like a Bingo game.
Write the nominal money in the table, where every time you save you have to cross out the number according to the nominal in the table. If you set aside 50 thousand rupiah, then you cross out the number 50 on the table.
This unique method can stimulate and encourage you to reach your target of saving 50 million in a year.
So, those are some ways to save 50 million in a year that you can do. Looks simple, right? Everything can be done if you have the determination to save and a consistent attitude.
In addition to the ways above, without realizing it you also need to manage your finances, you know. Don't let your finances fall apart because you never record all your income and expenses. To work around this, you can use a financial application. One of which is Whiz.
Whiz is money management app(s) which can help you manage finances with interesting features. What are you waiting for? Come on, use Whiz now!