Saving is like going to the gym or eating healthy: a habit that requires preparation. To achieve this, it is important to create a savings plan adapted to each person, specific, achievable and with a specific period. And this is important if you take into account that "personal finances and the economic situation are the main causes of financial stress", according to the financial comparator HelpMyCash.
The first step, according to experts, is to identify the expenses. To do this, they must be analyzed, recorded and classified, paying special attention to the so-called "ant expenses". "This exercise will allow us to identify those expenses that can be cut," insists HelpMyCash.
The second step would be to create a budget by assigning amounts to different categories of fixed and variable expenses. This will make it easier to calculate how much you can save from your salary (ideally 20%).
And the third, no less important, as explained by HelpMyCash is motivation. “Set a clear goal for your savings, whether it's an emergency fund, a trip, a car, etc.” From there, the future saver must design an action plan that includes how much money they have to save and in how much time. “For example, if you want to buy a car for 6,000 euros and you can save 200 euros per month, draw up a plan to achieve that goal within a certain period of time,” the experts give as an example.
Likewise, there are different savings strategies: such as the 50/30/20 rule, that is, 50% of income is allocated to fixed expenses, 30% to variables and 20% to savings, or the challenge of the 52 weeks, which consists of saving one euro the first week, two the second and so on.
Finally, it is important to be consistent in managing finances. “If the saver deviates from the plan, he does not have to get discouraged, just start over,” point out the experts, who remind that “changing financial habits takes time, but with perseverance and dedication, the objectives can be achieved.”
Once you have a defined plan and start saving money, you don't have to sit idly by. “You have to make money work for you,” they explain from HelpMyCash. One of the products that will allow savings to grow are paid accounts, with returns of 4%. In addition, these products do not charge commissions nor do they require any type of requirement to be able to contract them.
To give an example, the Trade Republic paid account has an interest rate of 4% APR. You can hire from just one euro and up to a balance of 50,000 euros, which would allow you to earn 2,000 gross euros in one year. In addition, the money is protected by the Deposit Guarantee Fund, up to 100,000 euros per owner and account.
The Revolut Flexible Account, with an expected return of up to 3.97%, depending on the plan chosen, is also another option. It is a product that invests in monetary funds, so the risk is very low. In addition, the Revolut account gives access to other advantages such as free money withdrawals worldwide or discounts and cashback in different stores.
The EVO Smart Welcome Account also allows you to multiply your savings, as it offers an interest of 2.85% APR the first year for balances of up to 30,000 euros, which gives access to a benefit of 843 euros. Furthermore, if you have more savings, you can contract a six-month deposit with a return of 2.85%.
Finally, another option is the N26 Savings Account, with a return of 2.26% the first year and no maximum amount.
