Why do you want to save? To fulfill a dream, for example a trip around the world? Or would you like to save for the children or provide for your own old age? No matter what goal you are working towards, wealth accumulation takes place in three steps:
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- earn money
- save money
- invest money
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Think long term
Nobody gets rich overnight – unless you win the main prize in the lottery. To be really secure in old age, you need time and patience. Deal with your finances. Yes, it’s boring and exhausting, but it’s worth it.
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Keep a budget book so that you get a realistic overview of what you spend how much money per month. Only then can you calculate the personal monthly amount that you have left over and can invest.
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Tip from financial experts: Put part of your salary into an extra account by standing order. That can be 50 euros or 200 euros. The money is safe from spontaneous spending and the standing order can be individually adjusted depending on the life situation.
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Financial experts call this procedure “paying yourself” – because you pay other people with the fixed costs for rent, electricity, heating, insurance and food.
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Reduce everyday costs
You can save money every month with little effort. Buy cheaper, electricity provider, internet provider, change insurance – that reduces fixed costs enormously. Do you really need four different streaming services, magazine subscription and gym membership? Take Kassensturz and honestly ask yourself if you really need this or that.
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Admittedly, a little discipline and abstinence from consumption are a prerequisite for having another 100 euros left over at the end of the month, for example. But in a year they’ll add up to 1,200 euros! This money serves as a buffer for difficult times or can in turn be invested.
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Saving tip: do you absolutely need the car?
Anyone who lives in the city and has a good infrastructure with buses and trams should think about selling the car and switching to car sharing. Renting instead of owning is the magic word here. Because most of the day your car is idle in a parking lot or on the street, so it is not moved. But it “eats” taxes and insurance every month. In addition, there is the TÜV, winter tires, petrol and the general depreciation.
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Instead, walk to the supermarket and have the heavy crates delivered to you. Cycle to work or take a bus. A monthly ticket is often financially supported by the employer as a “job ticket”.
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If you need a car for larger errands or don’t want to take the train on vacation, you can simply rent a car from car-sharing providers for a few hours. Insurance and petrol are already included in the rental price.
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And if you do buy a car, please don’t buy a new car. The loss in value after just one year is 30 percent!
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Invest in stocks or funds
Anyone who invests their money in cryptocurrency needs good nerves and a good dose of risk tolerance. Nobody knows how the courses will develop! A tripling of the value can happen within a year – just like the drop to a third.
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It is better to invest in a broad block of shares, investment or index funds or real estate. Get professional advice from a fee advisor or read up on the topic. Financial experts recommend investing at least ten percent of your monthly salary and choosing funds with high returns.
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Anyone who buys stocks needs staying power. Nobody gets rich with it overnight. Let the money work for you and check once a year which of your portfolios bring how much return.
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Invest in yourself
Many self-made millionaires agree that a certain will and an understanding of what is necessary are prerequisites in order to make and save money. Don’t be satisfied with what you have already achieved, stay motivated.
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Ask for a raise. Take advantage of advanced training, convince with your performance, make yourself indispensable in the company or look for another job if necessary – even if you have to move to another city.
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