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Set aside 50% of your salary for your needs and debts. 30% of your net earnings are for non-essentials, such as enjoyment and entertainment luxuries. And, last but not least, 20% of your earnings go in your savings account.
Put this into practice and you will see the transformation!
Use our calculator to learn how to maximize your money.
With good financial management guidelines, everything is possible! Take a look at our budget planning tips and apply them to improve your finances.
Credit is the ability to borrow money in order to buy goods or services. Maintaining a good credit history is very important in establishing your financial security.
It is a three digit score between 300 and 850 used by credit reporting agencies to evaluate your creditworthiness. The factors that determine your score are: payment history (35%), outstanding debt (30%), length of your credit history (15%), current credit (10%), and new credit (10%).
Living by yourself without any ties can get you either closer to or further from managing your earnings well. Maximizing your money requires organization. How do you do this? The key is planning! Here are some money-saving tips:
Prepare a budget list
It is very important to identify the things you spend money on. Make a list that includes all your income and expenses. This will let you to see how much money you need on a monthly and weekly basis. This will also enable you to manage your daily expenses better.
Apply the 50/30/20 rule
Set aside 50% of your net earnings for your debts and essential needs (food, transportation, and housing), 30% for outings and entertainment, and 20% for your savings account. If you want to calculate this accurately, we can help you with our calculator.
Watch your grocery bill
We know that everything you see is tempting, that you want to try something new every month, and that your friends make new product recommendations to you every week, but keep an eye on your grocery bill! Make a list of what you need and avoid buying products that spoil quickly when you know that you’re hardly ever home.
Take advantage of sales and discounts
If shopping is one of your hobbies, try to cut down on this. Start by shopping at more affordable stores and take advantage of sales and coupons. Shopping just because you feel like it will come at a high cost to you! Before buying something, ask yourself if you really need it.
Create new experiences
You know better than anyone else that a busy social life is a costlier social life. Instead of going out, invite your friends over. Host a dinner party instead of going out for dinner. There are tons of ways you can save of money!
When you have kids, you spend a bit more! That’s why savings are crucial to maintain financial order in your family. Plus, building this habit is the best legacy you can leave for your children so that they can manage their money responsibly. Even though we know this is an uphill battle, we’re rooting for you! How can you “stretch” those dollars? The key to is planning! Here are some money-saving tips:
It is very important for families to identify the things they spend money on. Make a list that includes all incomes and expenses. This will let you to see how much money you need on a monthly and weekly basis. This will also let you to manage your daily expenses better.
Set aside 50% of your salary for your debts and needs (housing, transportation, food, and others), 30% for family purchases and activities, and 20% for your savings account. If you want to calculate this accurately, we can help you with our calculator.
Avoid eating out
Of the daily expenses that most parents usually have, dining out is often one of the expenses that prevent you from saving money.
Save energy at home
On top of being of great help to the environment, being aware of reducing energy, water, and gas at home is a good money-saving method. Turn lights off during the day, use air conditioning as little as possible, turn off water faucets, and unplug anything you’re not using. The goal is to lower your utility bills.
Set goals with your family
Show your kids how to save and set goals together! Nothing brings more satisfaction that being able to go on a family vacation with the peace of mind of not having borrowed money or leaving any debts unpaid. This can be achieved with a savings plan. And yes, it is possible! Click here to download our table to help you organize your finances.
Welcome to adult life! You started school and realized that you’re pressed for money. Between books, supplies, food, debts, going out with your friends, gas, and many other things, it seems as if you’re paying to live. We understand, and that’s why we want to help. What can you do to “stretch” those dollars? The key is planning! Here are some money-saving tips that you can apply when managing your finances and you’ll soon see how things will get better:
Open up a savings account
If you don’t have a savings account, that’s the first step! Opening a savings account is crucial to giving yourself a cushion of money when you find yourself in a tight spot. At FirstBank, you can open an Easy Savings account with just $1
Imagine that your net monthly salary is a pizza that you have to divide in two. The first half (50%) will go toward your debts, needs, and items that are essential for you. Then, you’ll divide the second half into 30% and 20%. 30% of your money is for movie outings, traveling, or dining out, while 20% of your “net salary” goes directly into your savings account. If you want to calculate this accurately, we can help you with our calculator.
Have a budget
Make a list that includes all your income and expenses. This will let you to see how much money you need on a monthly and weekly basis. This will also let you to manage your daily expenses better.
Cut down on going out and take advantage of discounts
We know that college life makes it hard to resist the temptation to eat out with your classmates or go someplace you’ve never been before, but be consistent with your savings. If you have already spent the budget you allocated for going out or entertainment, bring snacks or lunch from home and/or take advantage of places offering student discounts.
Try not to use your car too often
If you live close to college, forget about the car and ride your bike! Riding a bike will not only help you save, but will also allow you to relax and enjoy the outdoors. If you don’t live close to college, but you do live close to a train station, avoid traffic and save on gas! Anything you can do to save will help.
The school years is the perfect time for children to learn both school lessons and life lessons! Developing the habit of saving at an early age will help your kids have better financial organization and preparation so they can make all their dreams come true. The key is to believe in them and encourage their commitment. Here are some money-saving tips for them to get started:
ELEMENTARY SCHOOL:
FUN WITH FINANCES
The best way to educate a child about the value of money is through play. That’s why, with Chavito dollars, you can play shop, grocery store, or bank while teaching them the value of money.
Print Chavito dollars here.
Money earning ideas
Whether it’s selling chocolates, washing cars, or keeping a piggybank where they put away money one dollar at a time, gift them the habit of earning their own money.
Create a budget plan
Explain to your kids that a budget is a plan to decide how much money to spend and how much money to save, and help them create their own.
MAKE AN EXPENSE CALENDAR
After preparing a budget, they must record their expenses. This way, you can teach them about how much money to spend and what to spend it on. In addition, they will be able to see their efforts pay off from the amount they have saved.
Download the Chavito budget worksheet we have designed for you.
Open a savings account for them
At FirstBank, we have the perfect savings account for your kids. It’s called FirstOne and, with it, you’ll be able to save their money.
MIDDLE SCHOOL:
Help them start their own business
It’s time to let their creativity soar! Sit down with your kids and ask them what they would like to sell. Think of an idea and help them start their business so they can make money.
At FirstBank, we have the perfect savings account for your teenagers. It’s called 1st Move and it’s ideal for developing a savings habit. You can open it with just $1 and they can have their own ATM/debit card.
HIGH SCHOOL:
Help them calculate their income
It’s important that their expenses are not higher than their income. That’s why you must explain to them that they must divide all the income they receive each month between their bills and expenses and put aside part of the money for savings. We recommend that they save at least 10% of their income.
Explain to them that a budget is a plan to decide how much money to spend and how much money to save, and help them create their own.
Teach them about having good credit
Once they start opening accounts in their name, such as cell phone accounts, student loan accounts, and credit card accounts, it is important that you explain to them that maintaining a good credit score by paying everything on time is vital to having more doors open to them in the future.
At FirstBank, we have the perfect savings account for young adults. It’s called 1st Move and you can open it with just $1. With it, they can get their own personal ATM/debit card.
