How to save money? 20 quick and easy strategies

How to save money? In a context where salaries are not keeping pace with the rising cost of living, many find themselves wondering what the “secret” is to saving at least a few hundred euros each month.

Earning a lot is not the only way - even if it is the simplest - to be able to put money aside. Careful budgeting and cutting unnecessary expenses can also help you reach the goal. It is therefore not an impossible feat: with discipline and strategy it is possible to create an effective and above all sustainable savings plan.

By analyzing the most popular advice among savings experts in Italy and abroad, we have collected and summarized
20 easy and quick strategies to put money aside and build a small nest egg for your financial goals.

How to save money?

By following these 20 quick and easy strategies, from the most challenging to the simplest, you can understand how to save and, finally, put money aside for your goals:

1. Investing savings

Investing money may seem complex and risky, but it is one of the best strategies for growing savings in the long term. Studying the market, and choosing between stocks, bonds, mutual funds, and much more requires a certain amount of commitment (and excellent sources, such as Money.it). But the results can be significant, even if you proceed according to your risk propensity and diversify your investment portfolio.

2. Renegotiate contracts

It’s time to do what you’ve been putting off for a long time: understand how to save on bills, car insurance, internet, and telephone. Invest some time and contact your suppliers to try to negotiate better rates, and obtain discounts or promotions. If it’s not possible to save, it’s time to turn to new suppliers. And it’s worth it: the savings in the long run can reach hundreds of euros every year.

3. Save on holidays

Here too, the keywords are time and patience. Planning a vacation on a budget requires planning and skill in researching deals, booking flights well in advance, and finding hotels or other convenient solutions.

4. Cooking at home

Many people find cooking every day difficult and boring, especially in light of the frenetic pace of life. But preparing meals at home greatly reduces monthly expenses. Once you acquire the habit (and lower your expectations, we are not all chefs), it will become second nature to prepare food every day and you will finally start to put money aside.

5. Cutting unnecessary expenses

One of the first steps necessary to save money is to evaluate your lifestyle and identify unnecessary expenses, such as subscriptions to services you do not use or impulse purchases.

6. Building an emergency fund

Building an emergency fund may seem counterintuitive in a guide on how to save money, but it is not. If you can set aside some savings over time - enough to cover at least 3-6 months of expenses - it will allow you to deal with unexpected expenses (broken washing machine, car that needs repairing, etc.) without affecting the monthly savings flow you are working on.

7. Automate savings

Consider setting up automatic transfers from your checking account to a savings account or an account that you do not use for daily expenses. This way you can start putting money aside without having to think about it too much.

8. Make a budget

Create and monitor your monthly budget to see where you can improve and if you are on track to reach your savings goals. Trust me: it takes time but it is a necessary step to have full control of your finances.

9. Use the 50/30/20 rule

The 50/30/20 method is a well-balanced strategy that involves spending 50% of your monthly income on necessities, 30% on wants, and 20% on savings - one of the most effective long-term strategies.

10. Create a personal budget

Making a budget requires analysis and planning, but once you have one, it will be much easier to manage your spending and savings. There are several money saving apps that can simplify the process, helping you track your income and expenses.

11. Use cashback cards

Cashback credit cards are an easy way to rack up small savings on every purchase you make, but be careful not to go overboard with debt. If used wisely, these cards can ensure a good flow of cash coming in as you shop.

12. Buy in bulk

Buying large quantities of products allows you to save on the cost of everyday goods. A particularly effective strategy for families or for those who want to reduce expenses in the long term.

13. Sell what you don’t need

Make a selection of all the things you have and sell what you no longer use on online platforms, so you can earn some extra money and at the same time get rid of useless objects. A good strategy to make money and have more margin for savings without having to make who knows what sacrifices.

14. Reduce energy consumption

Reducing energy costs is a simple strategy to save money but requires a change in daily habits. Turning off the lights, unplugging appliances that are not in use, and investing in energy-efficient devices significantly reduces bills.

15. Always make a shopping list

Making a shopping list and sticking to it is one of the simplest strategies to avoid impulse purchases and save money. With a little discipline, you can spend a lot less money.

16. Take advantage of deals

Taking advantage of deals requires careful monitoring of flyers, but once you get into the habit, you will find it easy to save on everyday purchases. There are several apps and online sites that help you find discounts and promotions.

17. Use savings apps

Automatic savings apps make saving easier and less of a chore: they round up the amounts you spend on your everyday purchases and set aside small amounts, making the process almost invisible.

18. Buy second-hand products

Buying used items, such as clothes or appliances, allows you to get great deals on products in excellent condition, significantly reducing costs.

19. Set a Savings Goal

Setting a savings goal can seem like a daunting task, but once you decide where you want to go, motivation will help keep you on track. Knowing what you’re saving for is a powerful motivator to not give in to the temptation to spend.

20. Learn to Say No

Finally, learning to say no is one of the simplest yet most effective strategies. It avoids unnecessary expenses so you can stay focused on your savings goals, forgoing small momentary pleasures in favor of larger goals.

FAQ

Here are the most frequently asked questions about saving money:

1. How much should I save each month?
There’s no one-size-fits-all answer, but a general rule of thumb is to try to save at least 20% of your monthly income. It is advisable to follow the 50/30/20 rule, where 50% of your income goes to needs, 30% to desires, and 20% to savings. If you can’t reach this percentage right away, start with a lower figure and gradually increase it.

2. What is the best way to start saving?
The first step to start saving is to create a budget. Keep track of your income and expenses, identify areas where you can cut costs, and define an amount to allocate to savings on a regular basis, considering automating the process by setting up payments to an account that you do not use for daily expenses.

3- How can I save if I earn little?
Even with a low income, it is possible to save through simple but effective strategies, such as cutting unnecessary expenses, taking advantage of discounts and offers, and cooking at home. The important thing is to start, even if with small amounts.

4- Is it better to save or invest my money?
It depends on your financial goals. If you need an emergency fund or are saving for short-term goals, it is best to keep your money in a short-term savings account. If you want to grow your savings in the long term, you may want to consider investing in financial instruments such as stocks, bonds, or mutual funds. The important thing is to make sure you have an emergency fund before you invest and to define how much risk you are willing to accept.

Original article published on Money.it Italy 2024-09-30 11:42:31. Original title: Come mettere da parte soldi? 20 strategie facili e veloci