How to save money, but above all why save money? The 10 commandments of savings will clarify a little your ideas on some things, a starting point to change your precarious financial condition.

1 – Create an emergency fund
Saving money means being careful Low-income families with at least 1,000 dollars/euros in an emergency fund are more financially secure than families with medium-income but with less savings.
2 – Categorize your expenses
How can you save if you don’t know how you spend money? The first step is simple: for one month keep the tax receipts of everything you buy and divide them into categories such as shopping, restaurant, personal care, etc. At the end of the month it will be clear how you spend your money and where to save.
3 – Follow the envelope budget method
If you have problems with overspending, try the letter envelope system: enter a pre-set amount for each expense category, one for each envelope. And when the money in the envelope has run out, it’s gone.
4 – Use the 24 hour rule
This rule avoids the purchase of expensive or useless items given by the impulse. Think about it for every non-essential purchase for at least 24 hours.
5 – Think about the future
There is a difference between saving money and saving money for your future. So don’t just spend less, but keep the money you save in a deposit account.
6 – Save money automatically
Automating your savings is the easiest and most effective way to save money, and it keeps extra money away from temptations. Each month your employer can pay a certain amount of your salary by transferring it to a pension fund, for example. Or you can activate a Capital Accumulation Plan or a deposit account with automatic withdrawal (from the current account, from the paycheck …). There are several possible solutions, choose one.
7 – Set short term savings goals
Start with a simple goal, like setting aside 20 dollars/euros a week rather than a long-term savings goal. People save more effectively when they aim for short-term goals.
8 – Start saving as soon as possible
Few people become wealthy only on their own salary. It is the compound interest that builds wealth over the years. For example, younger workers are best placed to save on retirement: investing in a pension fund from a young age allows you to have a very rich pension. The same logic must be applied to savings: the money saved today will be the money that will help you tomorrow.
9 – Spoil yourself, but use it as an opportunity to save money
Combine the cost of non-essential luxuries with your savings. So, for example, if you decide to pamper yourself with an ice cream, set the same amount spent on your savings account. If you think so and cannot afford to save the corresponding sum, then you cannot afford to indulge yourself.
10 – Calculate your expenses in hours worked
Take the amount of the item you are thinking of buying and report it to your hourly or daily wages. If we are talking about a pair of 50 euro shoes and you earn 10 euro an hour, ask yourself if those shoes are really worth five long hours of work.