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I have 10 months of work, which's my first work experience, and during this period I haven't saved anything in my bank account. I spend all of my salary on rent, which represents 32% of it and the rest in the daily expenses. I want a way to keep as much money as possible because I really need it to do many things.

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    What exactly are you asking? How to set and follow a budget? – glibdud Oct 13 '20 at 2:30
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    How to save as much of your salary as possible? 1) spend as little of it as possible 2) put the rest in savings. – DJClayworth Oct 13 '20 at 3:16
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The way to save more is to pay yourself first. What this means is to treat your savings like a bill you HAVE to pay every month instead of something you do with the money you have leftover at the end.

The simple truth is that it is hard for most people to consciously limit their spending when they have money in their hands. Your expenses will magically rise/fall to however much you have available no matter how much you make.

Steps to paying yourself first:

  • Put your savings in a different account than your main checking account
  • The best accounts are those that are not as easy to tap into (401k, IRA, CDs, Brokerage, etc.)
  • If it must be a bank account, do not carry around a debit card or checkbook for that account. The more hassle it is to spend the money in that account the better.
  • Don't co-mingle your savings accounts with your spending money.

Most Important

  • Set up your paycheck to a certain budgeted amount automatically goes into that account and the rest goes into your normal account.
  • Every time you get a raise, increase what you have auto-deducted. So if you get a 4% raise, you increase the automatic contribution by 2%. You still wind up with an extra 2% and you don't miss the 2% you "never had".

One more psychological tip I use Whenever you are tempted to tap into those retirement accounts, visualize borrowing that amount (x10) from an elderly version of yourself who has retired and no way to earn extra income. Explain to your future self what it is you need the money so badly for and why it is worth sacrificing your quality of life in your old age.

The bottom line is that you always have money for what you prioritize, so prioritize saving and you will have money for it. If you can't afford to pay rent and save, then you are prioritizing housing over saving and you need a cheaper place. Pay yourself first, then budget what you can afford with what is left.

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