Need help in saving money

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#1

Hello guys! I had several online journeys in the past and sometimes i was earning not very big , but still decent money - 800 eur - 1500 eur or so, sometimes bigger on some specific days. Anyway, I was never saving my money, I was always spending it on someting “to invest”. And I think that its not bad to invest online , to put the money into something you think will give you more money, scale your business, invest in scalling, getting bigger profit… But some investments weren’t profitable and sometimes i was going too fast with putting money into business without actually seeing if it will pay off.

I was not putting money aside, not doing any savings. So for example when one of my business closed I didnt have any savings to start business again.

Now, I’m again, earning some money online and I want to have savings. So my question would be how would you advise me to save guys?

For example, if i earn 1200 eur, would it be a good idea to save at least 15 eur daily which would be ~450 eur monthly? And never, never take that money for something not important. Its only for the emergency, only if my bussiness neds this investment a lot , not even for the improvement, but let’s say for not loosing clients or etc… I want to keep a separate bank account where i put money and never touch it unless its a vital need.

Would appreciate if someone of you guys could help me from your own, personal experience. Thank you!

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#2

It’s a good idea to save however much you can commit to and that leaves you enough to live comfortably/make some extraneous expenses. If you can commit to 15 euros daily, that’s great

#3

take 10 percent of what you earn and save it. Keep that and never touch it. take another 10 percent of what you earn and save for future investments. While this sounds stupid – it is the habits that come with and the displine to reach it that will greatly influence you. Study after study show only one thing is really in common with ones who make money and keep it. The habit of saving. Not looks, age, sex or anything else – the habit of saving is learned.

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#4

Great advice by @Alexnvo, that’s one of the best advices.

For me it helped to open a separate bank acc at other company, and never ever use it.

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#5

There is a old book from Napoleon Hill, ‘The Law of Success’ his masterpiece sitting next to my bed. I found that book as a young teen and read it. He stated a fact. If one does not acquire the habit of saving, one does not reach success. Many know his paperback that was found in the general public, ‘Think and Grow Rich’, in which EVERY success/financial book - course was a model from

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#6

In addition to the advice above, I highly recommend following the strategy from Profit First book.

The author compares it to have separate envelopes of cash that you allocate for various expenses and savings, but using bank accounts instead

Operating Expenses
Taxes
Owners compensation

And 2 separate accounts with a different bank that you don’t touch or look at.

It’s Been working for me and helps you visualize where you’re at with your money.

Have a look at this PDF overview of it. If you like it. I highly recommend getting his book:

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#7

Thank you for all the advices guys! However, im thinking , if a person lets say earns 5000 eur after many years of online business and he saves only 10-20%, isnt it too low? Because I dont think he will need that much left money for the business scaling or personal life…

In my case , let’s say 1000 eur a month is earned and i dont need to put it into the real life. Let’s say i have separate income for real life , so with 1000 eur i earn from online business , how about 50/50 - 50% to scaling business and earning from it more , another 50% to savings which i never touch, only if its critical importance to business or life? or 60/40 % , 60% busines investments, 40% scaling. but lets imagine a person starts earning 10k, so 40% - 4000$ a month for scalling in his case would be too much i think? ofc i dont need to care that much about these big earnings, but just interesting how it works when your income gets bigger and bigger…

#8

a mistake many do is save to much of monies where they don’t live well. Save a percentage – 8-10 percent, keep it. another 10 percent for business. It’s no the monies that matter, it’s the HABIT. big difference, never forget that.

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#9

Appreciate your help guys, any more ideas/personal experiences with saving money from online earnings?

#10

This is why I stay abroad and live the nomad life.

I save about 85% of what I make by living in cheap places - yet still live like a king.

Regardless of wherever you are, the key to being able to save is not fall into the keeping up with the joneses mentality.

Just stop giving a damn of what other people think of you based on material things you have.

And as you make more money, still keep your expenses low and don’t fall into the lifestyle inflation trap.

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#11

I’ll chime in with my $0.02 and hopefully it will help a bit. I’m not wealthy, but have a good habit of saving money. Disclaimer: This is based off of a regular salary, but can be applied to any income (Hell, I’m not even well paid!)

The set up: 1 current account, 1 bills account, 1 accessible savings account, 2 locked savings accounts (UK ISAs - you can just do 1 account elsewhere but this gives me the best return on long term savings)

First, sit down and calculate your rent/bills/food shopping - the things you need each month. This is sacred and won’t be touched. All of the following transactions are done within a day or two of getting paid so there’s no temptation to spend money where it shouldn’t be spent.

For me:

45% of my pay check goes to bills and rent. I put it straight into the bills account.

20% goes straight into the locked savings accounts.

A whopping 35% gets left on my current account. I can spend that on anything I want as I’ve already saved the money I need. At the end of the month, anything left goes into the accessible savings, usually 30% of the pay check as I’m not a big spender.

Boom. I’ve just paid 50% of my pay check into savings. I’d happily make that less, I just don’t really need much. The important thing is I can access 30% of my money if I do want to, but that other 20% is locked away for pensions and houses.

For me, the best thing has been to semi automate those first 2 or 3 days after a pay check so I don’t really have a choice about saving the money - it just happens.

Money from online earnings? Just apply the same percentages straight away.

Worth noting I also live in one of the most expensive cities in the UK so my biggest tip would be to have a partner or house mate to cut your rent in half! :sweat_smile:

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#12

Sounds good. The usual rule of thumb is around 10% of your business’ gross income should go on marketing. Cover the costs of running with the rest.

Of what you have left over, I’d aim for 50 percent of profit to you, the rest put into the business. That’s totally flexible though and depends on the scale and profit margins.

So if a business that you run had 1k turnover in a month at 50% profit (and you didn’t need the money to live), it would put 100 into advertising, 200 to you, and 200 to the company savings.

That 200 for you? Add it to your extra income as I mentioned above and if it’s left over at the end of the month chuck it in savings.

The 200 going to the company? Save it up and scale or invest when you want to.

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