Rick’s savings account. Photo: Pexels/Metro
How much money is in your savings account? We ask a different Dutchman every week. Because although we talk more and more about money, we never talk about exactly how much we earn and save. This week: 20-year-old Rik, who lives on about 150 euros a month.
Profession: student commercial economics, part-time job at a caterer
The net income: 800 euros, plus 150 euros healthcare allowance
Living situation: living at home with parents
Rick’s savings account
What’s in your savings account?
“12,000 euros in my savings account and another 13,000 euros in my investment account.”
What do you think of that amount?
“When I compare myself to others my age, these amounts are well above average and somehow it feels nice to know that you have more than the rest. At the same time, I also pay more attention to my expenses and keep track of everything in an Excel file. That gives an overview and therefore I know exactly what I spend per category.
Somehow it feels nice to know that you have more than the rest.
I can talk about money well with some friends. These are mainly friends who also invest themselves. I live quite minimalistic and I also have friends who are very different in that. For example, they try to convince me that I should spend more money. But mostly I ignore that and watch myself. I draw my own plan.”
How do you do that?
“If I go out with friends, or we go on an outing, for example, I give myself a budget. I don’t want to spend 150 euros on a night out, which others sometimes do. For me, 50 euros per night is actually the max.
I don’t like to spend money that much or easily. For example, on a holiday, but then I save for that and I don’t have to withdraw it from my savings account. In addition, I have few fixed costs. Basically just a phone subscription and nothing else. Because I play football in the selection, I can also do sports for free. I also occasionally spend money on clothes, groceries or petrol. But my parents pay for my studies and I don’t pay board.”
How much money do you save per month?
“It varies per month what I earn, but it is usually around 800 euros. I spend about 150 euros per month, so that leaves 650 euros to save. I put half in my savings account, the other half I invest.
There is around 650 euros left to save.
I started investing when I was 18 and every month I invest extra money. I learned about investing through videos online. That made it very accessible to start and I also learned how to invest in a sensible way. That’s how I started. I now have a strategy that I try to stick to: I invest 50 percent in ETFs and 50 percent in individual shares.
I mainly watch videos by Tim van Slow Rijker and by Rabi Savi, De Belegger. Tim explains the basics looks good and Radi is more about the investment strategies.”
What would you like to change about your financial situation?
“In the long run I would like to generate more income. That would allow me to save and invest more. For me it has become a kind of game, like I keep leveling up when I generate more profit, like you level up.
Interested in investing? ‘After this insight there is no more discussion about it’
Eventually I would of course also want to leave home. But I would prefer to buy a house immediately. That is also one of the reasons why I still have a relatively large amount of money in the regular savings account. I want to put that savings into the costs of buying a house. Actually, I never wanted to rent, because in principle that is wasted money.”
What is your best financial tip?
“Watch your expenses, I would advise others. By gaining insight into your expenses, you can also get a clear picture of where you can save. Then you will know better what you can and cannot spend. It gives me peace of mind to know how the expenses are divided.”
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2023-08-07 19:01:14
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