Only in the 1920s could we manage to save a 12,000 euro mattress. The lights go out and as Happy Birthday sounds, a friend approaches you with a cake. The candles prove that you have exceeded your twenties.
The 30s have arrived and turning back the clock is not an option. You can only take stock of what you have experienced. Your life, your work, your family, you couple … each one passes their exam, and the economic one is not good at all.
Your accounts are low. You barely make ends meet and there is no money in the piggy bank. “Could I have done better in the last decade?” You ask yourself. Do not suffer, it is a difficult age to thrive economically. But there are measures and habits that help from the first payroll.
Saving is a thing for ants (and investment, too)
Saving is like running a marathon. You can already plan a long-distance race and run it with your head. If you spend all the energy at the beginning, you will not reach the goal. The best thing is not to neglect the savings. 100 euros a month for a decade add up to 12,000 when we reach 30. If we ingested it, our mattress could be much higher.
“It is not a question of not leaving. On the contrary, you have to do it and enjoy yourself. It is a question of better managing the money we enter.”
Explains Araceli de Frutos, a member of the General Council of Economists of Spain.
Let others invest? Maybe not the best philosophy
When the payroll arrives, it’s time to pay off debts. First of all, the fixed expenses: rent, services, transport subscription, mobile bill, internet bill … Then divide what is left into leisure spends and what we will keep.
“The amounts will depend on our salary. If you charge the minimum wage [950 euros per month and 14 pays], you put around 300 to fixed expenses. (share a flat). Then, you can allocate around 100 to the savings. ” explains the expert.
Made from habit, this amount is now considered part of fixed expenses.
What can be done with that money? A while ago, you could have put it in a savings account. But the world of finance has completely changed. And also has the way you manage save. You could use it for investment products with low risk. You have to be
“careful not to fall for websites and businesses that promise easy money. Investment is a long-term issue. It is not just multiplying loaves and fish.” Says Araceli de Frutos.
Her recommendation is to seek expert advice. Choose the products that suit us best among those regulated by the National Securities Market Commission (CNMV). -A guarantee to avoid scams.
More difficult still: saving for the unexpected
The 100 euros that we have decided to save each month are not there. They serve to generate a good mattress for the future. So don’t them for that trip to Southeast Asia with friends. For these types of expenses, you have unforeseen savings.
“That doesn’t mean they are bad. They can be used for unexpected expenses, or leisure in general. The difference is that it is a type of short-term savings.”
They work the day your car or bicycle stop working. You will appreciate having money to fix it immediately.
Spend, yes, but in moderation
Gradually refilling a piggy bank does not imply we lock ourselves at home. In fact, none of this should be detrimental to leisure and enjoyment. It is simply about putting it together wisely. Look for formulas that help us spend a little less. Also, avoid falling into the traps of quick money.
If there are shared Netflix accounts, why go for an individual one?
There are many leisure expenses that we can have. Some beer, going to the movies, a dinner, a whim in the sales, a Netflix account… Not enjoying it shouldn’t be an option. “You have to have fun, but be aware.”, Says the expert. It’s better to avoid wasting. Something that, from her point of view, young people understand better every day. “The data indicates that more and more are about making plans at home. It is a way to optimize.”
Beware of poisoned candies
When the bank notices a periodic income, it sends a small gift. In the wallet, there is more than one:
- The debit one with which you survive each month
- From the supermarket where you buy the most.
- That accumulates discounts for a certain clothing store.
- The one that you don’t even remember
But the new one is special. Not only is it brighter: (gold and silver). But you can even spend the money you don’t have. The best thing to do with credit cards is to keep them outside your wallet.
“A debit card is preferable for a matter of self-control. You do not control the credit card. Even less when you are young and want to do so many things. It is like a candy they put in front of you. It is difficult not to bite.”
If you use that money and don’t pay it in the term, you’ll have additional expenses. The interests are even worse if we decide to pay it in installments.
Housing, expense or investment?
With the arrival of wages, the desire to become emancipated also enters. As in everything, you have to do it with your head. If you go right,
“it will be a mistake to take a rental apartment and to buy a house. As is having the possibility of choosing a great apartment and choosing another one.”says Frutos.
If we want to leave home, we need to find a good option for our budget. It is no easy task, the prices are through the roof. (in Madrid, the average is 819 euros per month and in Barcelona 769 euros per month). But experts give some advice:
“Do not get into a mortgage. Do not go to the most expensive neighborhood. And do not rent a huge apartment. Find a room or study and always keep in mind the importance of saving. ”
In short, the house should not prevent you from making ends meet.
If you haven’t done anything yet, there’s still time
If we had followed these tips during the 1920s… Know that blowing the candles in the 1930s would save us at least 13,200 euros. This without counting the salary increases that come over the years. Or the interest generated by good investments. But, sadly, it has not been that way.
Are you ready to save and save?
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