2022 is coming to its end and we can’t say it was a good year for the world. The economy is struggling with the post-covid consequences and literal wars, so it’s no wonder why people are afraid of a future crisis.
With all of these, the money-saving basics are a must-have knowledge independent of your social status. Stay tuned, as today we will discuss some of the smartest money moves along with some budgeting tips for immigrants.
Money Saving Basics
If you’re feeling like you are disastrous at saving money, don’t worry, you are not alone. A recent survey by the American Psychological Association found that 72% of US citizens feel stressed about money at least once a month.
You might be surprised to learn that saving money is not only about willpower and proper budgeting.
Your financial behavior is linked to individual psychology and historical and cultural factors. Still, there is no definitive answer to why some people prioritize savings while others don’t.
If you are an immigrant from Vietnam, India, or China, you might be shocked by the focus on immediate consumption and living on credit in the U.S. or the United Kingdom.
After all, money saving is about how you treat the future. Behavioral economists call that ‘intertemporal choice’–the decision to consume now or delay the process until later. People are usually ready to postpone consumption if they are rewarded for doing so in the future, but they differ greatly in terms of a proper reward.
Money-saving Tips for Immigrants
Still, even if you are less concerned about the future, or just can’t help but spend the whole salary in a week, this can change. Human psychology is very flexible, especially in the matter of finance, so here are some tips to assist you in this task(especially helpful for immigrants):
Rent Furnished or Basement Apartments
If you are new to the country, renting a proper apartment is a tough task. We recommend saving some cash on this one and renting a flat which is furnished already.
Many apartments already come with utilities included in the rent and you don’t have to pay storage fees for furniture you are not using.
Open a Bank Account
Many immigrants have a reasonable fear of banks and financial institutions. Nevertheless, in progressive countries, opening a bank account is essential to perform most monetary transactions. A bank account will make paying bills, online purchasing, and depositing much easier.
Opening a bank account for immigrants is not that difficult. For example, in the US all you need is to bring a social security number to the bank, and you are set.
Set Fixed Monthly Expenses
Think of the things that you literally can’t live without. These include rent, basic utility bills, and food.
The expenses that you require to eat, have shelter, and work are fixed monthly expenses.
This information is crucial for budget planning and it will allow you to:
A – Know how much money you need to survive
B – Perform smart money moves in the future
Build an Emergency Fund
An emergency fund is also known as a rainy day fund. This is a certain amount of money that you save up for the time when you desperately need it. We recommend having an emergency fund that is equal to about six months of expenses.
This way, if you lose your job or have an accident, your fund would give you a six-month cushion to live off. An emergency fund gives the freedom to decide the best option, not the cheapest one.
In the US many companies allow you to automate payments for utilities, mortgages, etc. Automating the budgeting will save you both money and time. All you need to start is to download a mobile app like IPSIPay.
Digital Finance Apps and Their Role in Money-Saving
Saving money is tough, but innovative payment processing will simplify it for sure. For example, IPSIPay offers the cheapest and easiest way to transfer money, receive payments and pay for services in the US and abroad. It is a simple, safe, and secure mobile app that will make transactions a lot simpler.
Download IPSIPay’s mobile app, and check out the most innovative payment processing method!