How to save money with the best tricks

If your salary evaporates like smoke, write down these tricks to get more out of it. And go thinking about a whim because you are going to save a lot …

You have always wanted to save some money but you have never been serious about it … That is over! With these tips, you will start today.

Saving cents like an ant is not always the most effective way to get the most out of your salary. “Small actions involve a lot of sacrifice and great willpower, although not so much savings,” says Luis Pita, author of the book “Ten peor coche que tu vecino“.

The expert recommends spending without remorse on what makes you happy and cutting spending on what you don’t: “If you like to dine out, take advantage of coupons, offers every week. And if you don’t care about clothes or cars, buy basic T-shirts and extend the life of your vehicle, even if it’s old”

Have you observed –especially during the time you have been in seclusion– that your housing expenses leave your salary to two candles? Perhaps it is time for you to rethink what is usually one of the most important outlays of your life. Therefore, before choosing a house, and especially if you are going to buy it, plan how you are going to do it. A good strategy can save you thousands of euros. If you decide before the age of 35, you can take advantage of institutional aid, such as the one provided by the Ministry of Development plan.

What if you rent? Well, in that case you have a plus: in Europe we love buying an apartment, although leasing has many advantages. Among the most important, greater labor and financial flexibility.

It is important that you try not to get into debt for more than fifteen years.

---

That without counting that you will not have expenses in spills, taxes, interests… It is a question of accounting. If your goal is acquisition, this advisor recommends pre-saving a good amount to reduce the interest generated by very long loans. It is important that you try not to get into debt more than fifteen years (if possible, ten). For example, a € 200,000 30-year mortgage will cost you € 142,000 in interest, while only € 64,300 if you cut the term in half. Ask yourself if you can wait a few years and pay cash. The price difference is worth it. That you are already up to your neck in a mortgage (the most normal)? Negotiate with your bank those spikes and commissions that raise the price (about € 30 in cards and checking accounts). Changing home insurance can cost up to € 150 a year and life insurance, up to 300. 

SPEND YES, BUT WITH HEAD …

For Luis Pita, another very common mistake is that we dedicate a significant part of our income to things that really don’t interest us as much. One way to become aware of this is to use apps like the one on Fintonic.com , which organizes your expenses by category (restaurants, receipts, petrol …) and, based on your employer, gives you recommendations to control them better and give you a little bit. The small thing counts: comparing prices in supermarkets can make you reduce up to 40% of your purchase. Use cash instead of a card: it makes you more aware of your expenses. And challenge yourself, like a Zero Spending day a week.

Use cash instead of a card: it makes you more aware of your expenses.

---

I’M GOING TO SAVE ANOTHER € 2,500 …

More effective than saving what you have left is to set aside a fixed when you collect. For example, set aside € 100 each month and at the end of the year you will have saved € 1,200.

1 Take a day to review your bills and subscriptions and you will see how much you can save. A change of telephone company, for example, can bring you € 200 in twelve months. If you remove yourself from the gym you hardly go to (€ 240 / annual fee) or get rid of any of the pay TV channels (€ 96 / year), you will have an additional € 536.

2 Use the rounding technique. Apps like Goin or Arbor account for the remaining peak. If you pay a coffee for € 1.55, the € 0.45 that rounds up goes to the piggy bank. If you take one a day, you will add € 162 in a year.

3 Take off some habit. Having a few less drinks a week is € 48 a month and € 576 a year!

4 Bring food to work. You will save € 360 just by doing it two days a week, isn’t that a lot?

---

I want to try to invest

If you really want to take advantage of your money, do not corner it in current accounts or deposits that hardly give a profit. This is the biggest mistake, says Luis Pita: “The ideal thing is to invest it in the long term, because time is one of the small saver’s great allies.”

Digital Advisors

Use apps that offer help in a personalized way. Vesto plans your finances and gives you savings and investment advice to achieve your goals (buy a house, take a trip …). Moneybox allows you to choose between stocks, funds, pension plans or socially responsible investment depending on your lifestyle: cautious, balanced or adventurous.

Support and win

Although it sounds like a Martian, crowdlending and P2P loans are booming. It is money that anyone can contribute –in the form of a loan– to support a company or a particular project and obtain high benefits for it (over 10 or 12% interest). The best thing is that you can invest from just one euro.

I WANT TO QUIT MY JOB AND TRAVEL THE WORLD

Life is much more than being tied to a job and a mortgage. So, if your dream is to travel, jump into it.

The plan

In addition to the savings you may have collected for this purpose, you can rent your house during your absence and sell everything that does not fit in your suitcase (or at least, what is not of great value to you).

How much will i need

Although staying in hotels is not the same as staying in hostels, it costs around € 11,300 to travel for a year. This is what Rubén Señor and Lucía Sánchez, the couple from Something to Remember during their first great journey around the world, spent on essentials: flights, transfers, insurance, sleeping, eating, visas…

By the way

There are many ways to save if you have decided that you want to see the world: from staying for free in local houses ( couchsurfing.com , airbnb.ie or bewelcome.org ), working on farms in exchange for a stay or taking advantage of your many skills (we know you have them) teaching language classes, selling photos …

---

---