save Some money every month is one of many people’s goals. Whether you want to have an economical cushion in the bank, go on a trip or treat yourself, the truth is you will always find A good reason to save money. However, this is not an easy task.
Daily expenses and unforeseen events make the months quite complicated. Reach the end of the month with a healthy bank account.
Today, we make a suggestion Very practical and easy way to save money Following this will help you save money gradually and almost without even realizing it. We called this the AVP method.
How to save money with the AVP method
The AVP method for saving money is a simple strategy based on splitting your income into three main categories: Savings, Life and Projects. These three components make up the abbreviation AVP. Below we explain how this method works.
This way you can save money every month without knowing it
- Saving: With every income you receive, the first amount you should set aside should be for your savings. The general recommendation is to save at least 10% of your income, It’s always better if you can save more.
- Life: This is the money you will use for your business. daily expenses and food, housing, utilities, transportation, etc. basic needs. Although it varies depending on your situation and living expenses, it is recommended that this does not exceed 50% of your income.
- Projects: This category is for: money you save to achieve certain goalsLike going on a trip, buying a house, starting a business. The percentage allocated to this section may vary depending on your goals and how much you want to save to achieve them.
The AVP method is a very effective money management strategy because it helps you allocate 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 consistently saving money, meeting your basic needs, and working towards your financial goals.