By making small changes to your lifestyle, you can save money and achieve your goals. Here are five tips to help you start saving and be prepared for unexpected financial risks in the future.

1. Calculate Your Saving Potential

By creating a personal or household budget, you can see where you spend money each month. From there, you can identify unnecessary expenses to cut and calculate how much you can save.

2. Define What You're Saving For

Saving with a clear purpose is more effective than just putting money away aimlessly. This purpose can be anything from preparing for an unexpected event like car repairs or medical bills to saving for a major purchase like a family trip next year or a down payment on a home. First and foremost, define your saving goal and calculate the amount of money you need to save.

3. Research Your Saving Options

Once you've calculated how much you need to save and for what purpose, it's time to research your options. Most people only think of a bank savings account when they consider saving money, but there are other options to grow your money:

• Option 1: Corporate Bonds: These are financial instruments similar to a bank's term deposit. In Mongolia, food manufacturers, construction companies, and financial institutions often issue bonds and offer them to citizens and investors. They typically have a higher interest rate than a bank's savings account and are considered a low-risk instrument.
• Option 2: Stocks: You can buy shares of foreign and domestic companies with growth potential and earn dividends.
• Option 3: Bank Savings Accounts: Research and compare the interest rates of different banks. You should also compare additional offers, such as discounted services that come with the account, different interest calculation methods, and the terms for taking out a loan against your savings. Choose the option that best suits you.

4. Don't Wait to Start Saving and Investing

If you're planning to start saving and investing, our advice is to start right now. The sooner you start saving, the more your money will grow.

5. Not Sure What Percentage of Your Income to Save?

If you're unsure how much to save, try saving one-third of your income. By consistently saving one-third of your salary and income, you'll be better equipped to overcome financial difficulties from unexpected expenses like car or home repairs.

6. Bonus Tip: Be Persistent

Saving and consistently putting money away each month isn't easy at first, but after a while, it will become a habit and, eventually, a lifestyle.

We are confident that these five tips will help you avoid future financial problems.