A 14 payments per month totaling €1,080 Or €15,120 gross per year.that’s him Interprofessional Minimum Salary in Spain (SMI), from which income tax withholding and social security contributions must be deducted. Charging €1,000 per month, saving money is quite a challenge, but not impossible.
the difference between low income save money The savings percentage should be higher in the second case compared to the average salary. As a Mileurista, some adjustments have to be made.These 10 Practical Tips will help you focus and Save even if you earn minimum wage.
Automatically save at the beginning of the month
Saving means putting in the effort and depriving yourself of something, whether you earn €1,000 or €5,000.Our brains are made to consume and If you let your savings go to your willpower, the normal thing is that it goes to zero.
The solution is to save and do it automatically at the beginning of the month. This takes away your willpower. This is the so-called pre-savings.
for start pre-save You simply decide what percentage of your salary you want to save and create an autopay at the bank where you receive your payroll into a separate account.
if you are not used to save Since you earn very little, start with a small amount, like 5% of your salary. For a person earning minimum wage, it can be 50 euros per month. From there you can gradually increase the amount to where you can or want to.
save on things you don’t care about
A A very common mistake when saving is to focus on cutting spending on habits we want to change Or what we think is a whim. This frugal approach requires extra effort.
Much more useful is to save on things you don’t care about. For example, instead of giving up on dining out or canceling your Netflix subscription, you can review your energy, insurance, and even your home mortgage payments.
In short, Find expenses that don’t add value to your life Plus, it’s easy to eliminate or create lasting savings, such as on electricity bills.
avoid impulse buying
Easier said than done. From supermarkets to websites to stores, they use tricks to get you to make impulse buys, making it harder to save money as a Mileurista.
there are many Tips for Navigating This Type of Purchase, but one of the most effective ways is to think about how many hours of work you need to put in to buy it. Just stopping to count can do wonders.If it takes a lot of effort, try Currently looking for cheaper alternatives.
The key to both cases is The distance between the moment of impulse buying and the moment of decision end of purchase
choose where you live
this address It is one of the major expenses, especially in big cities. According to Idealista, there is a difference of 330 euros between the price of an 85-square-meter house in the Retiro neighborhood of Madrid and in the Fuencarral district.
This difference is even greater if we are talking about outer cities or suburban towns. Fitting your home to your budget is one way to save money when you have a limited income.
quarantine subscription
Fixed expenses are the worst enemy of savings. Checking them out can help you balance your budget and save money each month. From insurance to subscription.
For monthly subscriptions, instead of canceling all subscriptions at once, try to isolate one or two subscriptions. In other words, put a particular subscription on hold for a month, then assess whether you missed it as much as you thought you would.
I spend them on ants
Subscription fees are one of the so-called “ant expenses,” small expenses that don’t add up to big bucks individually, but add up.
Noon coffee, credit card commissions, petty vices… crunch the numbers and use compulsive buying techniques to avoid them.
Give Yourself a Savings Challenge
savings challenge They are challenges for starting saving or raising a certain amount within a specific time period. For example, for the 52-week challenge, if you save a few euros from the first week, you can raise 1,378 euros in one year or 52 weeks.
These challenges help to realize that you can save with minimum wage and certain annual expenses such as vacation.
Or better yet, set yourself a savings goal.
Another way to approach the challenge is to create one or more short-term and long-term savings goals. For example, you could set a goal to save 20% of your salary, start with 5% and increase by 1% every two months until you reach your goal.
You can also set specific goals, such as the funds needed to increase your emergency buffer.
Saving Fixed Amounts: The 50-30-20 Method
The 50-30-20 rule is a formula for income distribution. The basic salary division is as follows:
- 1. 50% for basic needs.
- 2. 30% for whims and non-essential expenses.
- 3. 20% for saving or investing.
With this formula, you’ll always save the same percentage of your income no matter how much you charge. That way, when you make more money, you avoid spending more.
use shopping list
Shopping is one of the major expenses in any household. As with compulsive shopping, there are plenty of money-saving tips at the supermarket, and two of them will save you the most money: Make a shopping list and follow it exactly, then shop at the cheapest supermarket.
These 10 tools will will help save money Every month, regardless of your salary.