save A little money every month is one of many people’s goals. Whether you want a cheap bed in the bank, take a trip or pamper yourself, the truth is you will always find it. good reason to save. However, this is no easy task.
Daily expenses and unforeseen events make even months very complicated. Reach the end of the month with a healthy bank account.
Today we have a proposal very practical and easy saving method Following this will help you save gradually and almost without realizing it. We called it the AVP method.
How to save money with the AVP method
The AVP method for saving money is a simple strategy based on allocating your income into three main categories: Savings, Life and Projects. These three components make up the acronym AVP. Below we explain how this method works.
So you can save money every month without knowing
- Recording: For every income you receive, the first amount you have to set aside is for your savings. The general advice is to at least save money. 10% of your income, but if you can save more, it’s always better.
- Life: This is the money you will use for you. daily expenses and food, shelter, utilities, transportation, etc. such as basic needs. It is recommended that this does not exceed 50% of your income, although this will vary depending on your situation and living expenses.
- Projects: for this category money you save to achieve certain goalssuch as traveling, buying a house, starting a business. The percentage allocated to this section can vary depending on your goals and how much you want to save to meet those goals.
The AVP method is a very effective money management strategy as it helps you distribute your income efficiently and achieve your short, medium and long term financial goals.
By consciously allocating a certain amount of money to each of these categories, you can ensure that you are constantly saving, meeting your basic needs, and working towards your financial goals.