Saving money is an issue that many people are concerned about, especially young people. Many young people want to save money but find it difficult to do so. Some cannot save because their income is low and they have no surplus money to save. In this article, I will share with you 8 effective ways to save money for those with an income of less than 10 million.

For example, if you know that you will need to change your car in the near future, you will have a stronger motivation to save money. Plan for long-term goals, instead of just putting them off by prioritizing savings goals, you can clearly and reasonably determine how to allocate your savings. Knowing how to save money weekly, you will be able to create a reasonable spending plan with your income. This way, you can balance your income and expenses better with an income of less than 10 million VND per month.

Savings are not only useful in emergencies, but they also help improve your quality of life. You can also buy a house, upgrade your transportation, and enhance your surroundings with your savings to improve your quality of life. Moreover, you can avoid unnecessary debts thanks to savings, and with a salary of less than 10 million VND per month, you can still create a reasonable spending plan. To achieve this, you can start with weekly saving methods before implementing a longer-term saving plan for those who are new to it.

Method 1: Effectively allocate income using the 6 jar rule

In daily life, managing personal finances is an important skill that helps us maintain stability and achieve financial goals. However, many people do not know how to start or lose direction when managing their finances. The 6 jar rule is a simple yet effective financial management method that will help you achieve financial stability and freedom.

• Jar 1: Necessary expenses. In this jar, you should allocate 55% of your income to meet necessary living expenses, which include daily expenses such as living costs, food, fuel, and other expenses. Allocating a large portion of your income to this jar ensures that you have enough money to cover essential costs and maintain your daily life.
• Jar 2: Long-term savings. The second jar is used for long-term savings or to pay for larger future goals such as buying a house, buying a car, or saving for retirement. You should allocate 10% of your monthly income to this jar; accumulating money over a long period helps you achieve long-term financial goals and creates financial peace of mind.
• Jar 3: Financial freedom fund. In the third jar, you should allocate 10% of your monthly income to invest in a financial freedom fund. You can choose to invest in income-generating investments such as stocks, mutual funds, and other opportunities. Investing in this jar helps you create a source of passive income and continue to grow your wealth in the future.
• Jar 4: Enjoyment. Life is not just about saving and investing but also about enjoying what you do. In the fourth jar, you should allocate 10% of your monthly income to reward yourself with recreational and leisure activities. This helps you maintain a relaxed and happy spirit while managing your finances.
• Jar 5: Learning. Learning is an important factor in enhancing your knowledge and skills. In the fifth jar, you should allocate 10% of your monthly income to invest in learning and self-development. This can include attending courses, buying books, or participating in workshops. Investing in yourself helps you grow and increase your self-worth.
• Jar 6: Helping others. Finally, in the sixth jar, you can allocate about 5% of your monthly income to help others and do charitable work once you have achieved financial stability. Helping others not only brings joy but also serves as a way to become a source of motivation for those around you.

Method 2: Track weekly spending notes

Managing cash flow and daily spending well will help you balance your income and expenses better and easily control your financial situation. This way, you can timely adjust your spending more reasonably. You need to regularly track your spending to clearly understand your spending situation; this is also an effective way to save money and help you adjust your spending plan reasonably.

Depending on each person's circumstances, you can choose a suitable way to track your spending. For example, you can use digital banking apps or Excel spreadsheets to create spending statistics. This method is very convenient because you can use formulas in this software to quickly calculate your expenses. Alternatively, you can record and track your expenses through a notebook.

Method 3: Keep the change

It’s bigger than you think. The next way to save money that I want to introduce to you is not to underestimate small change. Keep it. After about a month, you will be surprised when you check the amount of small change. Although small change has little value, the amount accumulated over a month or a year will amaze you. You can buy a piggy bank or find a box to store your change. At the end of each day, you can check your pockets for small change. If you have small denominations like 1,000 or 2,000 VND, you can put them in the box or piggy bank.

Another way to save is to clean up items you no longer need and sell them; you might make a small amount of money. Save this amount to add to your savings. Additionally, you can use electrical appliances wisely. Turning off the lights when leaving the house will help reduce your electricity bill; moreover, cooking regularly will also help you save a significant amount on food expenses.

Organizing a saving spending plan requires persistence and determination; even with low income, you can still be strict with yourself to achieve the desired savings. Learn to save costs from the smallest things.

Method 4: Create a separate account to hold money

This is an extremely effective way to save money because separating your savings into a separate bank account will help you manage your money better, avoiding the use of savings for unnecessary purposes. You can choose a bank to store your savings. This is a very safe option that many people prefer. You should open a separate savings account from your regular bank account.

Method 5: Set savings goals

One of the best ways to save money effectively is to set clear goals. Think about what you want to save for in the short term (1 to 3 years) and long term (4 years or more). Then estimate the amount of money you need and the time you can save it. Some common short-term goals include creating an emergency fund equivalent to 36 months of living expenses, preparing for a trip, or buying a car. Long-term goals often include education for children, retirement planning, and home upgrades. A small tip to help you achieve your goals is to break them down into smaller, achievable goals. Each time you complete a small goal, enjoy the feeling of success and use it to motivate you for the next goals.

Method 6: Determine your financial priorities

After reviewing your expenses and income, your goals will significantly affect how you allocate your savings. For example, if you know that you will need to change your car in the near future, you will have a stronger motivation to save money. Plan for long-term goals instead of postponing them by prioritizing savings goals. You can clearly and reasonably determine how to allocate your savings.

Method 7: Choose the right tools

You should have multiple savings and investment accounts suitable for each of your short-term and long-term goals. Carefully consider the available options and take into account factors such as minimum balance, service fees, interest rates, risks, and required time. To achieve your savings goals by choosing the right tools, you can optimize your savings and achieve your goals most effectively.

Method 8: Track your savings growth daily

Review your budget and check your monthly savings progress. This not only helps you track your personal savings plan but also helps you detect and fix problems early. When you see your savings increase daily, you will also feel a stronger motivation to find more ways to save money and quickly achieve your goals.

I hope that with the 8 saving methods for those with an income of less than 10 million that I have shared, you will choose a few suitable methods for yourself and apply them among these 8 ways.