The pandemic, and especially the confinement, have made many households save. The savings rate of Spanish families was 202, according to INE data. However, how much money do we Spaniards allocate to savings?
According to data from , we Spaniards used only 6.5% of our income to save before the pandemic. This means that from a salary of 1,000 euros, only 65 a month go to savings.
The same study of the app collected that only four out of ten Spaniards manage to save. Among the main motivations for doing so were, according to another Selfbank analysis, travel or vacations, almost on a par with having financial solvency.
Methods to get to be by the average cinema
When it comes to knowing how much we save at the beginning, inevitably, it is about having a budget. Some methods, by which half of the income is used to cover needs, 30% to extra expenses and 20% to savings.
Once we know how much we spend and on what things, we will be able to know how much we are capable of saving or what expenses we can put aside to increase our savings rate. Experts advise having the capacity to save, although part of this money that we withdraw goes to investment and not to pure savings once an emergency fund has been obtained to cover unforeseen events.
To save effectively, one of the most repeated tips is ‘pay yourself first’, that is, make a transfer to a savings account as soon as the month begins.
We can also turn to personal finance techniques such as ‘zero sum’ budgets. Devised by the creators of the You need a budget application, this methodology seeks to allocate each euro that we enter to a specific expense or, better said, to the planning of a possible expense.
The proposal is simple: at the end of the month all our income should be allocated. We should not have any money left over. This may seem harmful at first, but the truth is that part of our income has been allocated to contingency piggy banks that can be as segmented as we want: car breakdowns, home improvements, technology expenses, whims…
That’s where this savings fund ‘piggy bank’ should appear. If all we manage to allocate is 50 euros a month, we will go little by little, but the idea is to budget everything (even what we can spend on leisure or clothes in a month) and everything that is left over goes to the emergency fund until fill in the months with which we feel safe.
Another important tip is to use a separate account. This account should be parked on an “out of sight, out of mind” principle: that way, you’re unlikely to be tempted to spend that money.
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