Want to save money but your account is always empty at the end of the month? Often, you don’t have an overview of how much you’ve spent during the month and you get a nasty surprise at the end. With these tips, those days are over! We will show you how you can put money to the side every month, despite rising prices.
Separate accounts
In addition to your current account, which you use for your daily expenses, open a separate savings account. This will help ensure that you don’t spend your previous savings unintentionally.
No overdraft facility
Deactivate your current account’s overdraft facility. Many accounts offer an overdraft facility that allows you to spend more money than you currently have in your account. What sounds like a practical service could turn out to be a money pit. The amount that you overdraw your account will usually be subject to interest, which you will have to repay. Make sure that your current account is always balanced and ideally has no overdraft.
Fixed saving amount
Look at all your fixed costs (rent, mobile phone bill, car etc.) and deduct them from your monthly net income. With the remaining amount, think carefully about how much you want to spend on food, leisure and other things and how much you can save. Be ambitious, but honest with yourself. An overly strict savings plan won’t help you if you have to make exceptions every month. Choose a lower saving amount that you can realistically meet.
Standing order
Always be one step ahead. Instead of transferring the remaining money from your current account to your savings account at the end of the month, set up a standing order that transfers a fixed amount at the beginning of the month. This way you won’t even get tempted to spend your saving amount.
However, make sure that you select a date for the standing order that is at least three days after your pay day. Since banks do not process transactions on weekends and holidays, your salary may sometimes reach your account late.
Continuously optimise
Try your new savings plan for three months and see if you can stick to it. Then consider whether you are being too strict or whether you have further savings opportunities.
If you can never stick to your plan, then choose a smaller saving amount that you can definitely keep to every month. An overly ambitious plan is useless if you have to give up on it after two months.
However, if you manage to stick to your savings every month, you can consider whether you want to increase the amount you’re saving. Examine your expenses and look around for additional savings potential. Are there cheaper alternatives for your lunch break? Or can you cancel a streaming subscription? But don’t forget to treat yourself sometimes. Small rewards help you stay motivated and increase your chances of sticking to your savings plan.
These tips will help you save money. If you put together a realistic savings plan and stick to it consistently, you will definitely achieve your goal, whatever it may be.
