Finance Check: Saving with Budget Book, Discount or Debt Rescheduling
Those who want to save money should not start with things like clothes or the like. No, who would like to save correctly should do this with the finances themselves! We have put together a few tips for you that will make it easy for you to save more money in the future.
Leave your change in a piggy bank
Small change is perceived as annoying, especially in the wallet, as it not only takes up space, but also increases weight. So if you have too much small change you should definitely put it back in a piggy bank and save. If you then go to a bank with the saved small change and pay it in, you will surely be positively surprised how much money you can earn with small change!
Note what you’re spending your money on
In order to keep track of your finances you should make a note of your expenses. This way you know how much you have spent on what and know where there is potential for savings. A budget book is also a good option here. This is useful to keep track of your expenses per month and to control them.
Maintain a household account
If you want to have an overview of your expenses, a budget book is probably the best choice. With a budget book you have the possibility to see afterwards, for which things you spend your money and whether it was really worth it. In the long run, this can lead to spending less as you now have a better view of the things you are buying.
How to keep a household book?
Whether on paper or digitally in Excel or in an app – every output is captured. By accurately recording expenses, one becomes aware of where the money is going and one usually thinks again about whether certain things have really paid off. By making one’s own expenditure transparent through a budget book, it will lead to less spending in the long run.
The budget book at a glance
- To note your issues
- Gives you an overview of your finances
- You see what the purchase of a product was worthwhile for and where rather less
- You get a better view of your buying behavior
- On paper, Excel or in an app
Tips and tricks for keeping a household book correctly
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Return some money monthly
It’s important to have cash reserves. You can create this by saving some money every month. It doesn’t always have to be directly a lot of money which is put aside. It is also sufficient if it is monthly 10-20 €. Over time, you can also save up a small fortune.
Refer money at the beginning of the month
A big mistake is to wait until the end of the month to save your money. This has the reason that at the end of the month there is not much money left which is worth saving. For this reason you should put your money aside at the beginning of the month. So you can not only decide for yourself how much money you put aside, but you also have a reserve for the rest of the month in case this should happen. So an important rule is when the salary comes, first to save a part you want to save for yourself and then to pay the other things.
- It doesn’t have to be a lot of money directly what is put back
- It is enough 5-20 Euro per month
- At the end of the month there is usually not much money left which you can put aside
- Let your money back at the beginning of the month
Punctual payment of invoices – A lower risk of debt
In order to prevent reminders and interest on arrears, it is important to always pay the due payments on time. This not only gives you a better overview of your finances, but also avoids the risk of getting into debt.
Pay cash instead of card
It is often easier to pay with your card than with cash. However, this is one of the big traps to fall into when it comes to saving money. With the card you quickly lose track, so it’s smarter to pay with cash. This gives you a better overview of your finances and you know when you might not want to spend any more money.
Pay debts as quickly as possible – save money by not incurring interest
It’s not uncommon for someone to get into debt. This can have very different reasons, but the common ground is that it is important to pay off your debts as soon as possible. The reason for this is that by paying off your debts you no longer have any accrued interest and you save a lot of money.
Always keep an eye on your bank charges
Who has an account with the bank knows that you have to pay fees annually. In addition to the annual fees, other fees may also apply. These include, for example, foreign payments or fees incurred when withdrawing money from an external bank. So always keep an eye on your bank charges to avoid unpleasant surprises.
What you should watch out for:
- Fees incurred when using a third-party bank?
- Do you have to pay fees if you want to withdraw money abroad?
- Do you have to pay fees for account statements?
Open a savings account and get the value of your current account
If you want to save money, it is not a good idea to leave it in your checking account. This is due to the fact that the money on the current account loses 1.5 percent in value annually thanks to inflation. To avoid this, a savings account is advisable. Here you can leave your money safely in an account and save without worrying that your finances will lose value.
Do you have vacant real estate? Rent them out!
If you have a vacant property or just one room, it is advisable to rent it out. You can do this not only as a typical landlord who gets a monthly rent, but also only for people who want to make holidays. You can do this via various portals and thereby reduce your monthly costs.
- Rent your property yet for Bed & Breakfast Offers
- Or as holiday domicile
- You do not have to rent your property as a typical landlord with monthly rent
Loans and taxes – Where and how much you can save
Many people associate credit and taxes with something negative, because a lot of money is paid here over time. But what many may not know is that you can also save a lot of money here.
How you can save money by rescheduling your loans
If you have a loan that was taken out a long time ago, there is a very good chance that you will be able to reschedule it on more favourable terms. This means that you take out a new and therefore cheaper loan in order to replace the old loan.
- Old loans were often taken out some time ago
- Increased chance that you can reschedule the loan on more favourable terms
- You take out a new and cheaper credit
- The new loan replaces the old loan
Compare your credit card with other providers
Just as with other things it offers to compare the different providers of credit cards. Make sure you use a credit card that suits your payment habits.
Use special repayments on loans – To reduce the total cost of a loan
If you have taken out a loan, you should make sure that you have the possibility to repay it at any time free of charge. Here, it makes sense to make use of the unscheduled repayments and thus reduce the overall cost of the loan.
Compare different loans with each other
Similar to credit cards, you should also compare the different loans with each other. You should therefore not only compare the costs of the different loans, but also the different credit terms.
What you should compare:
- The cost of the different credits
- The credit conditions
- Whether the credit really suits your payment and purchasing behavior
Use cashback options or bonus services from credit cards
If you have a credit card, you know that you will receive credit for payments. You should definitely use these, because they can save you a lot of money. There are many providers who offer their customers various advantages. These include advantages such as discounts with various companies, airline miles or other things.
- When paying with a credit card you often receive credit notes
- You get discounts at many different companies
- You can benefit from airline miles that are credited to you
What costs can you deduct from your tax?
Who does not work on the basis of a minijobber is obliged to pay taxes monthly. What many people do not know, however, is that some costs can be deducted from the tax. These include, for example, costs such as:
- For the renovation: For a maximum amount of 6,000 € you can deduct up to 20 percent
- For childcare: If you have children who still need a babysitter or go to a day care centre, you can also deduct two thirds of the expenses here, but here you can deduct a maximum of € 4,0000 per child
- For communication: If you use your telephone and/or Internet also professionally, you can deduct up to 20 percent from the tax, but here the limit is 20 € per month
- For services: If you hire a company or self-employed person to work on an apartment, house or garden, you can also deduct 20 percent of the costs here
- For health: If you exceed a minimum threshold for the cost of privately paid medical treatment, you can also deduct this cost from your tax