If you want to build up assets, you first have to save in order to be able to invest or invest money at all. It’s often hard to believe, but you can save a lot of money in your household. Here are four simple tips that will help you save money in any case.
1. Get an overview and learn to budget
To identify where savings can be made, all income and expenses should first be written down over the course of a month. In addition to the usual items such as rent, electricity, insurance, telephone, Internet and food, these also include small items such as coffee to go on the way to work or small snacks for in between times.
Then the monthly income and the sum of all expenses should be compared to see how much could already be saved in the beginning. The money saved could be invested, for example, in shares or ETFs with which it is possible to speculate in companies. The returns finally increase the income, so that then even more can be saved.
2. Check current contracts and subscriptions
The expenses are then divided into fixed and variable expenses. Certain fixed expenses, such as rent and payments for term-limited contracts, are hard to shake. However, for certain items such as electricity, insurance or telephone, it is often possible to save a lot of money in the long term by switching providers.
When changing a provider, however, there are usually certain notice periods to be observed. With de.collected.reviews you can find tests and experience reports on utilities, insurance and telephone or Internet providers. Many people also have small amounts deducted from their accounts each month for monthly subscriptions and the like. Here it should be questioned to what extent the offers are really used or whether they can be cancelled.
3. Set budgets for variable expenses
There is usually a lot of money to be saved on variable costs such as food, drinks, entertainment and eating out. It’s best to set monthly budgets for all items, although if you really want to save money, you can also cut corners. Everyone is familiar with the call from friends asking if they want to go out for a meal or a drink. Here you could also make the counter-suggestion of whether you would much rather cook at home.
Sometimes it is better to simply say "No to say, if the budget is to be kept.
It should also be questioned whether the daily coffee to go or the snack at work are really necessary. Also a coffee taken along in the thermos bottle fulfills its purpose and with a self-made roll with fresh and consciously selected Toppings, one can meet the small hunger in between usually much more healthy and above all more cheaply. When it comes to groceries, many times money can be saved by reaching for the lower shelf or going to a retailer a few hundred yards away.
4. Do not incur debts
If loans already exist, there is nothing that can be done about the installment payments. However, it is important not to incur new debts unless a house needs to be financed. The interest on loans increases expenses and is not available for saving. Especially vacation trips or small purchases should not be financed by a loan.
It is also important that all incoming bills are paid on time, so that no overdue fines or interest charges are added to the monthly budget. A monthly budget should also be set for card payments and, most importantly, reviewed regularly, as card payments often result in losing track of the total amount already spent and incurring further debt.