Money Basics
It’s a common misconception that when you make more money, you end up financially comfortable and all your problems are solved. Unfortunately, that’s rarely the case, because, in general, the more people earn the more they spend.
Perhaps you’ve noticed this from your own experiences or by observing others. At university you managed happily with 800€ a month, but now you’re a professional there’s no way you could live on that amount.
That's why it's so important to not only increase your income but also reduce your expenses.
So why not sit down with yourself from time to time and see if you’re still on track with your financial plan? Plan to get an overview of your spending and, most importantly, question your spending behavior. Here’s how to cut your costs and save more money each month.
First, you need an overview of your costs. You should be able to distinguish your running costs from your one-off costs. With apps like Zuper, this is done automatically. In the app, you can create one-off and monthly budgets for your expenses, and the app does the rest for you.
You could start with your top 10 most significant costs and set budgets for those. The more precise you are with clarifying and adding your expenses, the more you can reduce them and begin to save money.
To reduce your expenses and save more money, you need a saving goal. This will give you a reason to save and increase your chances of success.
Define what you want to save up for and keep it in mind. Be sure to set an amount and a deadline so you have fixed numbers to work with.
If you're just starting to save, it can be tough to stick to it. But even saving 5€ a week is better than not saving at all.
Give yourself permission to start small. In the beginning, the amount is not as crucial as perseverance. Creating a routine gets you stuck in good habits. Once you’ve formed the habit, it’s much easier to increase the amount you save.
We often succumb to the temptation of impulse purchases. Try to shop in a more considered way and be aware of your emotions; this makes you less susceptible to buying unnecessary things.
This doesn’t mean you have to quit shopping , only that you should plan your purchases and only buy what you really need.
We have everything in abundance - use this to your advantage and reduce your costs.
Sign up for any free rewards programs you can find. To do this, create a new email address that you use exclusively for offers, and then when you want to shop, check your inbox for deals, coupons, and sales.
Spending money online is easy and super fast. To change this habit, it's best to remove your credit card number from your online accounts.
If you're tempted to spend money, you'll need to take that extra step first, which may give you enough pause to realize you don’t need the item after all.
Get energy-efficient light bulbs and always turn off the light when you leave a room. Also, pay attention to modern appliances as they are more energy efficient and this pays off in the long run.
If you’re interested in how much energy you use, calculate the electricity consumption of your household.
Do you often have the best ideas while out and about, and then forget them by the time you get home?
Here’s a simple but surprisingly effective solution: Get a notebook. Jot down all your ideas, whether it’s a way to save money or a meal you’d like to make or a subscription you want to cancel.
In the evening, consult your notebook, tick off your tasks, and take care of those niggling money-munchers that so often escape your attention.
Want even more tips and tricks on how to save money in everyday life? Check out our blog post on how to save 100€ every month. How do you reduce your expenses in daily life? Let us know in the comments.
