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Savings method based on rounding

Date: February 24, 2024 Time: 04:49:32

The rounding method consists of saving the change from purchases when they are not a whole number, until reaching the next euro. That is, if we go to the supermarket and make a purchase for a total of 57.35 euros, to apply the method we would have to save the remaining cents until reaching 58 euros, in this case, 65 cents. In this way, penny by penny and with almost no effort, at the end of the month you can have a small amount of savings that can be greater each year.

How to save with the rounding method

The money obtained through the rounding method can be saved in a piggy bank, in order to accumulate the benefits and be able to recover it after a while. It is a simple savings strategy that can be used beyond shopping in stores, since, for example, it can be applied with our own bank accounts.

In them we can opt for rounding to set aside a certain amount of money and have round numbers in our accounts. According to our possibilities, we can round up the figures that we can, a method to save without hardly realizing it. In fact, currently different banking entities have created tools to save excess monthly money when using credit or debit cards, in some cases activating rounding in their application and then sending those funds to a separate checking account.

Advantages and disadvantages of the savings method based on rounding

As with any other savings method, the one based on rounding has a series of advantages and disadvantages that should be known. As for the main pros, we find that it allows you to save easily and with little effort, and, furthermore, if you are a person who decides to do it digitally, everything will be even simpler than if you opt for the traditional formula.

On the other hand, it is a good option to start saving if you have never used any type of strategy or method to achieve it, since it does not require much dedication. Rounding is a perfect option to enter the world of savings, so that, once you feel comfortable, you can move on to more complicated formulas. To all this we must add that, since it is savings based on spending, it is not necessary to deprive yourself of anything, being able to maintain normal consumption habits.

However, just as it has a series of advantages, we also find several notable cons, such as the promotion of consumption. And to save with this formula it will be necessary to spend money and that will lead you to make unplanned and impulsive purchases, which could cause you, instead of saving, to end up spending more money on things you don’t need with the “excuse” of save some money

Furthermore, although it is a method that allows you to save money without hardly realizing it, you usually obtain a small amount of money, so it can take you a long time to save enough to be able to take advantage of it to enjoy a trip or buy a good. that you have been wanting for a long time. In any case, this is a good way to get started in the world of savings, before evolving to more restrictive and risky strategies.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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