save money
It’s so effortless to implement
In order to save money, you need an overview of your own finances.
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Many people lose track of their finances in everyday life, find saving stressful or don’t know how – everyone can do it.
In the hectic pace of everyday life, many people find it difficult to keep track of their finances. Saving money regularly seems particularly difficult. Nevertheless, it is becoming increasingly important to build up financial reserves in order to be more independent. Four simple tricks that can help you save.
Get rid of debt for the savings plan
Yes, frugal living sometimes requires salt in the wound. Because we should definitely avoid consumer debt. This means not spending money on things you can’t afford right now and will have to pay back later. Also In her podcast of the same name, Madame Moneypenny gives advice on this with her financial update, which appears once a month – and helps women in particular to achieve financial independence. In order for this to succeed, the “debt tooth” must first and foremost be pulled out. Because one thing is clear: as tempting as the new sofa is, for example, in three installments or paid for through the overdraft, both can become a problem. Both the supposed “buffer” of the current account and installment payment plans are often associated with high interest rates. Therefore, the first step is to minimize installment payments and debts and learn not to respond to lure offers from various providers.
Set goals that are important to you
Detailed planning helps you keep an eye on your own expenses. Regular analyzes of finances are important, especially taking personal and individual goals into account. In her articles, the financial expert Madame Moneypenny talks about creating emotionality. So: What goal is so important to me that I like to save and prioritize it over other expenses? With the help of the financial planners now installed in many bank apps, you can easily determine which expenses are coming out of your account. Classic household books can also help you get an overview. This way you can find out what unnecessary expenses arise each month. Once these have been identified, they should be reduced. The freed up money can then go into the piggy bank to reach the next vacation destination or feed the financial cushion in a separate account, savings book or something else.
Sports, sushi or streaming services?
However, when it comes to saving, big goals don’t always have to be the priority. Small steps in everyday life can also lead to savings. The Consumer advice center recommends, for example, keeping an eye on special offers on certain foods before shopping in order to reduce expenses. It’s also helpful to set an everyday budget so that you don’t literally go overboard: How much money do I have available for a snack during my lunch break? Instead of ordering sushi with colleagues, expenses can be reduced with so-called meal prep meals, for example. Entertainment costs such as sports or subscriptions to streaming services also need to be taken into account. Frequently used memberships should be prioritized, while expensive or unnecessary offers, such as the typical sports studio membership, should be canceled. But if you’re looking forward to it too soon, thrift is of course no excuse for skipping a health-promoting sport. How about inexpensive hiking or jogging instead?
The 52-week savings challenge
A savings challenge is about learning how to save effectively. When it comes to saving, it is important to build discipline. In this context, various financial experts describe discipline as a muscle that needs to be trained slowly and steadily. In the 52-week savings challenge, a certain amount of money is put into the “piggy bank” (mason jar, money box, second account) every week. However, you start small and gradually increase: for example, in the first week the deposit is one euro, in the second week two euros, and so on, which creates a considerable sum over the course of a year. The sum inserted always corresponds to the respective week. As in its title, the challenge ends in the 52nd week with a payment of 52 euros. A total of 1,387 euros will be saved. By the way: If you want to practice saving in smaller steps and with less money, you can also do the 12-month savings challenge – and put the number of the month in euros every month. The total amount is significantly smaller, but you still get to train.