How much money do you keep aside every month? Less than you would like? We give you 10 tips to save. After all, as life gets more and more expensive and wages don’t follow evenly, it’s getting harder to have some money left over at the end of the month. However, we recommend that you save at least 10% of your income every month.
1. Set priorities
Make sure you always have a buffer before you make large, less urgent expenses. Start building a piggy bank for unforeseen costs and only then start saving for that big trip that you have wanted to make for so long. You have to wait a little longer to realize your dreams, but at least you can do it with peace of mind.
2. Keep a goal in mind
Do not compulsively set aside money every month without knowing exactly what. Then the fun is immediately over. Write down how much you want to collect after a certain time and stick to it. That way you have a goal and saving is all the more fun. Then you know what you are doing it for. Did you manage to achieve your goal? Give yourself a reward.
3. Cut down on your expenses
Is it difficult to set aside a fixed amount every month? Then check whether there are no fixed costs that you can reduce. Maybe your mobile subscription is a bit on the expensive side, do you still pay unnecessary insurance somewhere or do you urgently need to switch to a cheaper energy supplier? List all your fixed costs and find out where less can be done.
4. Save only the extras
If you are unable to save a fixed amount every month, you can agree that you will set aside the extras you receive, such as your holiday allowance or your end-of-year bonus. You can save for your children with these tips.
5. Give automatic orders
If you let yourself each month choose between putting an amount in your savings account or spending it immediately on something nice, then the temptation is often great to eat your money right away. Make sure that money is automatically transferred monthly from your current account to your savings account, you don’t have that problem.
6. Use two accounts
Don’t just leave all your money in your current account, you will lose control. Open a second savings account that you cannot just plunder with your debit card. Money in a savings account also yields some interest.
7. One account per purpose
Most banks allow you to save for several purposes at the same time. This way you keep a nice overview of the road you still have to travel to buy that new car, for example.
8. Think about investing
Due to the current low-interest rates, savings accounts are certainly not the best way to have your money yielded in the long term. If you have some surplus money that you do not need for a longer period of time, you can invest your money. That is of course not completely risk-free, but the chance that you have a nice extra cent in your old age is much greater than with a savings account. Do you want to invest successfully? Then do it wisely by spreading your money as much as possible.
Another way to make money yield more than in a savings account is to invest in solar panels or extra home insulation. The return you earn with this is much higher than with a traditional savings account.
9. Avoid borrowing and saving at the same time
Do you have an urgent, high expense to spend and would you rather not use your savings for this? Then remember that the interest you pay on a personal loan is much higher than that of a savings account. So do not make unnecessary debt.
Going into the red, what does it cost? Going below zero on your current account obviously costs extra money. Many banks provide the option to automatically transfer money from your savings account to your current account when the latter dips below zero. In addition, you can set a balance alert that notifies you when your account is in the red.
10. Throw that sock under your mattress
Belgians like to stick to sums of cash at home. That may give you a feeling of peace, it does not yield anything. If you opt for a savings account with a higher interest rate, you will earn something more. Just like investments, provided the willingness of the risk is acceptable. By reinvesting your profits, your assets continue to grow every year. Provided that the stock market does not crash, of course, but you can also take advantage of this by investing in installments: by investing an amount every month at the prevailing stock prices, you minimize your risk of having bought too expensive. Good luck with our 10 tips to save!