Savings is the part of our income that we do not consume today, so that we can spend it in the future. We all want to save more, but without stopping enjoying the present. We know that by saving more money month after month, we can live more peacefully and better deal with unforeseen events. However, it is not an easy task. There are always temptations and occurrences in which to spend money.
But don’t despair, because if you want to save more money month after month , I’m going to help you. I have prepared 5 practical tips for you to start right away, and start improving the health of your personal finances.
first . If you want to save more, you have to take control. A lot of people spend, and then if there’s anything left over at the end of the month, they save what’s left. And unfortunately, many people have a lot of months left at the end of their salary. For that reason, what I recommend is that you program the savings, as one more expense. As you collect, you automatically pass a fixed amount of money to another account. And what is left over in the day-to-day account, you spend.
Recommendation: Start with 5% of your income. Later you will be raising it if you see that you can comfortably meet your expenses. No matter how low your income, everyone can save. Even if it is a small amount per month. Achieving 20% savings shouldn’t be a problem. Take the opportunity to save the extra income (the return of the income tax return, the bonus, the extraordinary payments, etc.)
Second . Practice conscious saving. Now that mindfulness and living in the present are so fashionable, I advise you to write down all your expenses. This way you will know where your money is going. You have to be a bit disciplined with that. At first it is a bit difficult, but then it is very easy. I do it with an Excel sheet that I keep in Dropbox and which I can access from my computer or from my mobile. It helps me to know precisely what my fixed expenses are and to be aware of where my money is going.
Recommendation: Download my personal expenses Excel sheet for free
Third . Save on commissions and bank charges. Find an account with no fees and a free debit card for your day-to-day expenses. Many banks now ask for a lot of requirements to not pay commissions. That can reach up to €240 per year. To which should be added the commissions of the cards. And every time, it is more difficult to get a debit card without commissions, with which to see your expenses charged to the account at the moment.
Recommendation: I recently discovered the Term Card. A free card and online account without links or conditions, which I can control from my mobile at all times. Payments with this card have rewards. And with its introductory offer , you can get up to €30 cash back on your purchases at the supermarket. 5% of your payments. You can download the App and open the account in a matter of minutes.
Fourth . Review your service providers once a year. I meet many people who passively complain about how much their car insurance goes up every year. Or someone who says they pay a lot for electricity and gas, but don’t bother to check the bill and compare it with other companies. Once a year, you should sit down to review your insurance (home, car, life, health…) and your supply providers (electricity, telephone and internet, gas, etc.) and in which network of stations you can save more on fuel.
Recommendation: Use the personal expenses Excel sheet or an expense control application to control and compare this type of fixed expenses. You can save a lot of money . No more complaining and not acting.
Fifth . Plan important expenses and create a savings cushion for unforeseen events. Planning large expenses and purchases in advance, as well as having an emergency fund to draw from when there is an urgent and unexpected expense, will protect you from requesting personal loans and from falling into consumer loans that limit your freedom and suffocate your capacity saving. Debt is good, but only if used wisely and for certain things.
Recommendation: Create an emergency fund that covers between 6 and 9 months of your fixed expenses. It will take you a while to save that money. But you will gain peace of mind. And it will allow you to face the largest expenses with greater foresight and control.
As you can see, everything is put on. Saving more money month after month is within everyone’s reach. Everything is starting. There are good tools that will help you with your purpose. Use them, and in a short time, you will begin to notice the results.