Saving has never been more important than now: having a solid financial cushion provides peace of mind in uncertain times and reduces stress on a daily basis. And although saving money effectively is not always an easy task, there are effective tricks and methods to achieve it.
According to the experts from the financial comparator HelpMyCash.com, "there is a basic error that almost all of us repeat when we want to save and it consists of considering that savings is the money that we have left over once we have covered all our expenses".
In this sense, specialists say that the most effective method is to allocate a percentage of the payroll to savings. Thus, as soon as a person receives his salary, he should separate the savings in a piggy bank and organize his expenses for the month with the remaining money.
But what should be the amount allocated to savings each month? This varies according to individual circumstances, but there are parameters that can guide savers.
The 50/30/20 rule consists of separating the payroll into three fractions: 50% for fixed expenses, such as rent, mortgage or transportation; 30% for variable expenses, such as clothing, outings or meals; and 20% goes to savings. Thus, if you have a salary of 1,200 euros per month, this rule proposes allocating 600 euros to fixed expenses, 360 to variable expenses and saving 240 euros.
“The reality is that, in many cases, fixed expenses exceed that 50%. A person who lives alone, for example, usually allocates a much higher percentage to rent," they say from HelpMyCash. For this reason, they emphasize that the most important thing is to build the habit of saving, regardless of whether 5%, 10% or 15% of the payroll is set aside.
This method involves setting aside a set amount of money each week. The first week, for example, one euro is separated; the second two euros; the third three euros and so on. Although the difficulty increases as the weeks go by, it is a way to gradually separate the savings. By applying it, you can save up to 1,378 euros per year.
Of course, from HelpMyCash they assure that, for this method to be effective, there must be a previous financial organization. "A person who usually spends their entire salary before reaching the end of the month, probably will not have the necessary money to separate their savings during the last weeks of the challenge," they say.
This rule is similar to the 52-week challenge, but the savings are daily: on day one, one euro must be set aside; on day two, two euros and so on. The objective is to save 496 euros in those months of 31 days and 465 euros in those of 30. If it is repeated every month, at the end of the year, approximately 5,500 euros will have been saved.
"Along with these methods, there are various savings alternatives. However, the challenge lies in finding the one that best suits the saver's possibilities," emphasize the HelpMyCash specialists. In addition, they suggest considering these methods as a basis for devising your own, so that the amount allocated to savings is realistic and allows you to build a lasting habit in the long term.
