Creating a budget is a sensible long-term investment, and not just in times of crisis. 5 tips how to save in everyday life without it hurting.
No sooner do you take the money out of the machine than your wallet is empty again. And also the account balance is lower than expected. And yet you haven’t done anything great at all. And all the bills: the unforeseen dental treatment, insurance and then the taxes Tax relief What should I pay taxes on?? .
If you are one of those who, at such moments, resolve to tighten your belt until the budget is back on track, you are making exactly the same mistake that many others do. You will almost certainly be faced with the same problem again in a few months’ time.
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Every day, budget and debt counselors are contacted by people who are struggling to make ends meet or are in debt (see box with free support offers). Many people hardly account for what they pay for and how much they pay.
Some people go even further. If bills remain unpaid or the salary is not enough for the vacation or the new car, the account will be overdrawn. Or you plug the hole with a small loan (see video below), the repayment of which, together with high interest rates, is an even greater burden on the budget.
Have your expenses under control? At the end of the month, can you really say exactly how much money you have available?? Observer subscribers can use the "Budget Planning" checklist to list their expenses and income in detail in the table to protect themselves from getting into debt.
Most people know very well how much they earn. But few can give accurate information about their regular expenses. Who knows how much they spend on groceries, clothes or gifts??
What is a matter of course for any business Financial Planning How to Secure Your Liquidity in the Long Term is neglected in many private households: creating a detailed budget that shows where the money goes, what you spend how much on, and where savings are possible.
If you want to create a serious budget, you must first record your fixed expenses. This includes housing costs, health insurance and insurance premiums, taxes, communication costs (telephone, radio/TV Serafe You should know about the fee , Internet), energy and mobility costs (electricity, car, public transport), subscriptions to newspapers et cetera and contributions for club memberships.
What remains after deducting these fixed costs must be enough for the so-called variable budget items: for food, expenses for clothing, hairdresser, leisure, provisions for health costs, gifts and new purchases, as well as for vacations, training Free training has its price and for saving.
Budgetberatung Schweiz offers free sample budgets based on experience, for example for individuals, families or apprentices.
After creating a budget, many go shopping with different eyes, much more consciously. You may be surprised at how much you spend on seemingly trivial things, or how much you spend on things you don’t really need. Frequent food orders from delivery services, for example, are very expensive. In many cases, it is not until people check their expenses that they consider whether one or another amenity is really worth the amount they have spent on it so far.
If you have your budget under control and manage to set aside a month’s salary or even two months’ wages for provisions, you’re unlikely to run into a financial bottleneck again.
Until that time comes, the good old piggy bank can bring the joy of saving: Feed it every time you have two two- or five-franc pieces in your wallet. You will feel little of this outflow of funds in everyday life. From time to time, you may use these savings to buy something that you would not have bought otherwise. Maybe even something totally unreasonable.
Tip 1: Taxes
Based on your tax return, estimate how high your next tax bill will be; as a rule, it is 15 to 20 percent of net income. Then transfer a twelfth of this amount to the tax office each month by standing order. The office pays interest on amounts transferred too early. In many communities, the interest rate is higher than it would be on a bank account.
Who with the payment in arrears tax debts What if I can not pay on time? If you are not a taxpayer, you should submit a written payment proposal to the tax office. And: never take out a loan to pay taxes – because the interest on late payments at the tax office is many times lower than the interest on a loan.
Tip 2: Shopping around
Take advantage of the sale. Savings can be made especially on bed linen, household items, children’s clothes and sporting goods. But: Wherever clothes in all sizes and colors are offered, it is not a matter of reduced bargains, but of cheap goods produced especially for the sale, which should put the customers in a buying mood.
Be careful when shopping on the Internet: If you order goods from abroad, you may have to pay shipping costs and customs fees. In addition, you bear the risk if something is damaged or lost. Beware also of super-cheap offers and when unknown providers Fake Shop Fallen for online store – what to do? Ask for advance payment.
Tip 3: Groceries
Take advantage of promotions and compare prices. The bulk pack is not always cheaper. Pay attention to the placement in the store: Inexpensive products are usually at the bottom of the shelf, the more expensive ones at eye level. Cook so that there are leftovers – this will get you a cheap lunch for your lunch break while you are at work. If you freeze leftovers, you always have a quick and tasty "ready meal" at hand.
There are steep delivery charges for online shopping. If you want to have groceries and household goods delivered to your home, it is therefore best to join forces with neighbors.
Tip 4: Insurance
Damages that are rather unlikely and that you can financially bear yourself, you do not necessarily have to insure Insurance Which insurances are needed – and which not? . Homeowner’s and liability insurance are recommended in any case.
With cars, fully comprehensive insurance is only worthwhile in the first few years. You can do without passenger and bonus protection insurance. Check before conclusion of a luggage, travel annulment or breakdown assistance insurance whether you are not there already protected by household insurance, protection letter or traffic club. Do not take out long-term contracts. Here’s how to switch if you find a cheaper deal.
Tip 5: Credit and customer cards
They tempt you to live beyond your means. Many holders of customer and credit cards are in the red or in arrears with the payment of bills. Banks also charge interest on arrears of up to 12 percent – and steep installment surcharges when you pay off your debt. In addition, frustration is guaranteed: Before the clothes, the vacations or the new music system have been paid off, new offers are already tempting you on the market again. With so-called debit cards, the amount is debited to the account immediately. How to avoid debt interest and reminder fees due to payment arrears.