Jasmine
VIP Contributor
In general, there are two main ways people save money.
The first method involves saving whatever is left over at the end of the month after you pay your entire bills and spend on necessities. For example, if you earn $100 you have $10 left after paying all bills, you save that $10. The next month, maybe you only have $5 left to save, and the third month, there's nothing left to save.
The second method is more proactive. You set aside a fixed amount from your paycheck every month, like $10, before spending anything else. So, if you earn $100, you save $10 and then manage the rest of your expenses with the remaining $90. Next month, you save another $10, and if you overspent last month, you try to cut back this month.
The second method is considered better because you are consistently saving money every month regardless of how much you spend.
The first method involves saving whatever is left over at the end of the month after you pay your entire bills and spend on necessities. For example, if you earn $100 you have $10 left after paying all bills, you save that $10. The next month, maybe you only have $5 left to save, and the third month, there's nothing left to save.
The second method is more proactive. You set aside a fixed amount from your paycheck every month, like $10, before spending anything else. So, if you earn $100, you save $10 and then manage the rest of your expenses with the remaining $90. Next month, you save another $10, and if you overspent last month, you try to cut back this month.
The second method is considered better because you are consistently saving money every month regardless of how much you spend.