You have probably asked yourself more than once how to make your savings grow and it is possible that you immediately thought of investing. And it’s clear that this is a good way to get profitability, but before we get to that part of the process, what we need to do is save. Our goal is to help you achieve your savings goals. In this article, we will explain how to make your savings grow and lay the foundations for good economic planning.
How Do You Make Your Savings Grow?
You’ve probably already asked yourself the question: what can I do to make my money grow? As we said in the introduction, it’s important to save to benefit from future performance. Talking about investing may seem like a complex activity or one that is not within the reach of many, but it is not. Here are some key tips to increase your savings:
Define Your Life Goals
Life goals are the goals we want to achieve in our lives. They vary greatly from person to person, but they are the main source of motivation when it comes to saving (because to achieve them we will need money) and they help us make decisions.
Your life goal may be to retire at 50, to travel around the world, to buy a classic car, to renovate the family home in the city… The important thing is to set specific, measurable, attainable, realistic and time-bound goals.
We often make the mistake of saving only what we have left. We pay for everything and if we have something left over, we keep it. And so you can’t reach your savings goals.
The best option is to practice the pay yourself first policy. As soon as you receive your salary, withdraw the amount you decided to save and put it directly into an account that you use only for saving or into a savings product.
In this way, you manage to turn saving into something mechanized. Something you do yes or no every month. And if you want to make it even easier for you to remember, schedule a transfer from your checking account for income and expenses to your savings account.
Reduce Your Spending
You may be thinking, “How am I going to save if I have a lot of expenses?”. That’s why you need to make the decision to save on your expenses, because the less you spend, the more money you’ll have available for savings.
Here are some tips that will help you reduce your monthly expenses with the ability to control your daily spending:
- Favor white brands in your shopping cart, you can save up to 45% (about 1,800 euros on average per year).
- Choose the right tariff for electricity and gas and change company if you find a better offer.
- Check your car in private workshops: the bill can be 30% lower than in official services. Drive efficiently and responsibly, you will save fuel and avoid fines.
- Use public transportation whenever possible, ride a bike or walk directly.
- If you need to buy clothes, look for bargains, dive into discount stores and take advantage of sale periods to stock your wardrobe with basic clothes that won’t go out of style.
- Be mindful of and reduce unnecessary spending, i.e. your antsy spending.
Using Solidarity As a Double-Edged Sword
If you have managed your savings well, you now have more money. What if you used some of it to help others?
Being a supportive person has a price in terms of tax, because with some donations we get deductions of up to 75%. This means that if you make a donation of 150 euros to an association for research on rare diseases, for example, you can get back up to 112.5 euros on your tax return.
There you are! With those tips, you should be able to increase your savings. Interested in learning more? Come back to check the second part of our article.