How to find the ideal form of savings:
If there is still so much month left at the end of the money, there can be two reasons: Either the income is really barely enough, or it’s due to bad financial planning. If the latter is the case and you have the feeling that your salary is just running out in your hands, here are a few tips to save money today.
Large and regular expenses such as rent, mobile phone bills or insurance policies are usually still well in view. But do you know how much money you spend on coffee-to-go, eating out or books? If not, you should have your finances checked thoroughly. Your best ally in the fight against disappearing money is the good old budget book, which is now available as an app, and the right mindset.
How much rent can you afford and how much could you save each month? The 50/30/20 method helps you answer these questions. This rule for dealing with money can be a good starting point for your own budget. The basis is your income after taxes or the amount of money you have at your disposal. For example, if you have projects that earn money in addition to your main job, you add it all up. Then you do a quick calculation:
- 50% of your income is earmarked for fixed costs. With that you cover all the essentials of life: Rent, insurance, public transport tickets, groceries (only the basics)
- You are allowed to spend 30 percent of your available finances as you wish: holidays, eating out, new racing bike – go for it!
- 20 percent of the money you use to pay off debts, fill up your savings account or save in other ways.
Depending on your life circumstances, the numbers can of course also shift. Maybe you can make ends meet with 40 percent of your income for your fixed costs and would like to put more into your savings account.
Consider it a challange
If you respond to challenges particularly well, you can consider a money challenge: Getting by with 50 euros in a week, not spending more than three euros on lunch, limiting shopping in the supermarket to ten euros, etc. The no-spend-day is a very popular challenge among savers: a day on which you are not allowed to spend anything at all. Especially ambitious people try to manage several days in a row. Especially for impulse buyers, a day without spending can be eye-opening.
The good old piggy bank
What would saving be without a piggy bank?! Get into the habit of regularly taking change out of your wallet and putting it in your own glass or classic piggy bank. Those who often pay with notes know that over time, some coins accumulate in their wallet. Those who want to save a lot in a short time will also put every 5 euro note into the piggy bank. As a “5-Euro-Trick”, this tip has been circulating on the net for quite some time and inspires the ambitious savers, because this way, a lot of money is accumulated within a short time.
Before each investment or purchase, ask yourself the question: How long will the acquired asset make me happy? First step: On a scale of 1 to 10, assess how happy the investment makes you. Never spend your hard-earned money on things that do not score at least a 6. Step Two: Estimate how many hours your investment makes you happy. For example, a concert ticket of your favourite band costs 80 Euro. This is not cheap, but the anticipation of it, the concert evening itself and the memory of it will make you happy for a very long time. You could also invest the 80 Euros less, e.g. in a piece of clothing that you quickly forget to wear after a few times and replace with something else. Rule of thumb: Experiences such as holidays or leisure activities usually give much longer pleasure than purchased items.
Little helpers on the smartphone
If you want to keep track of your expenses, you should make it a habit to write everything down. Budget book apps can help you do this. If you enjoy it, you can keep track of all your expenses on an ongoing basis, but a month or two may be enough for a first overview of your habits.
Be careful with plastic money
Shopping with a plastic card is convenient. But you quickly lose control while shopping. Moreover, plastic money tempts you to spend more. That’s why it’s best to decide in advance how much you want to spend.