We are all aware of the importance of saving. However, today most of the Spaniards have to spend every month with an unstable soil that does not even usually reach € 1000 per month. This has led us to wonder if it is possible to save with this type of salary.
According to experts, it can be achieved. Through the hands of those mileurist citizens, they will spend approximately € 500,000 throughout their working life at current prices. According to experts, if about € 15,000 of that total, you can get a net worth of another € 500,000 at the end of our work phase. Would you like to know how to do it? In that case you have reached the right place.
From Point Credit we will give you the best keys and tips so you know how to save with a salary of € 1000 per month. Go for it!
Set clear goals
It’s no use saving if we don’t know what we’re doing for. Do we want money for retirement? Do you want to save to pay for our children’s education? Do we want to settle the mortgage?
Setting goals is essential to make a profit. For that reason we must be able to set realistic goals that can be adjusted over the years. The trick is to get a positive difference between income and expenses. And there are only two ways to achieve it:
- Increase revenue
- Decrease expenses
Each individual must be aware of their possibilities and how to achieve their goal.
We have to understand savings as an important expense in our economy. As a general rule, people only save what is not spent per month. However, saving has to be understood as another expense that we have to face each month.
In order to achieve this goal, nothing better than dividing expenses by:
- Those that are necessary, such as the mortgage, electricity bills, food, water, communications and so on. Considering savings as a necessary expense each month is a good trick to get a positive balance month by month.
- Those expenses that are not necessary but improve our quality of life, such as going out to dinner, having breakfast outside.
- Superfluous expenses, such as the telephone rate with all channels and high-speed fiber or the extra gym fee to be able to go at all hours.
The simplest to save is to start by eliminating expenses that are considered superfluous. You have to know what to give up to be able to reach the end of the month without credit and with a positive income. If controlling our expenses is difficult because we do not earn enough to cover what is necessary, we must consider looking for an alternative source of income.
Leave some of our money to create an emergency fund
In order to save, it is necessary to know what we spend the money on each time and divide it into items. As a general rule, these items must be divided as follows:
- Dedicate 50 percent of our capital to the necessary expenses.
- Dedicate 30 percent of our capital to personal expenses.
- Dedicate 20 percent of our capital to savings.
According to experts, it is not enough to create an emergency fund to cover the contingencies that arise over time. It is best to accumulate approximately two or three salaries for this purpose.