If a person earns less than they spend or struggles to save, the idea of saving becomes essential. There are five practical ways to start, and the first step is budgeting. This guidance comes from Aleksey Rodin, a financial consultant who shares insights on the portal Myfinance.rf, affiliated with the Research Institute of the Ministry of Finance of the Russian Federation, as discussed with socialbites.ca.
Rodin emphasizes that today there are numerous mobile apps and services designed to help manage a budget. The key is to test several options and select the one that fits best. The initial task is to begin recording every expense and organizing it into clear categories. After that, a person should calculate their total income. The next step is to review all expense categories and pinpoint areas where costs can be trimmed, which is a straightforward way to free up money for savings.
According to the expert, it’s important to watch for unnecessary costs. Common culprits include rides taken by taxi, meals purchased away from home, subscriptions to entertainment services, and the needless apps cluttering a device. He notes that cutting back on these items can help allocate roughly 10-15 percent of the budget toward savings, turning discipline into measurable results over time.
The second and third strategies focus on using debit cards with cashback benefits and staying alert to store promotions. Cashback on everyday purchases can translate into meaningful monthly gains, sometimes amounting to several hundred rubles. In many banks, the interest earned on account balances can rival basic deposit returns. A carefully planned grocery list helps resist impulse buys, while promotions require a simple rule: buy only what would be purchased without any discount, ensuring purchases are intentional rather than impulsive.
The remaining two methods involve tax benefits and practicing restraint before major purchases. Tax deductions provide legal avenues to reduce or reclaim certain payments. For instance, some social tax deductions offer annual refunds equivalent to part of the expenses for education, medical care, and sports participation. If a person pays personal income tax and actively participates in gym activities, they can apply to the tax authorities at year’s end to receive a refund, potentially up to a defined limit.
Before making a large purchase, it’s wise to add the item to a wish list and delay the decision for several days or even weeks. If the item remains necessary after the waiting period, take additional time to compare offers across the market. This approach helps identify the most advantageous option and prevents rushed, regretful expenditures.
In practical terms, these steps collectively build a resilient habit of saving. By combining budgeting, controlled spending, cashback strategies, promotional awareness, tax efficiencies, and delayed gratification, individuals can steadily increase their savings rate and create a security cushion for unforeseen expenses or future goals.
Additional context from socialbites.ca highlights that the year 2023 focused on practical saving methods, reinforcing that disciplined spending and strategic planning continue to drive financial well-being. Industry analysts recently observed shifts in deposit interest rates, underscoring the importance of diversifying savings methods and staying informed about available tax benefits and consumer promotions.