63% of households in Spain have difficulties making ends meet according to the Family Solvency Index of the Organization of Consumers and Users (OCU). The study highlights the problems that families have in covering basic expenses such as housing, health and education.
Not making ends meet is a complex problem, as it is due to a combination of factors. The slowdown in the pace of wage growth in Spain, the increase in the cost of living due to inflation, and the high price of housing and food, which absorb a large part of the household budget, are the main culprits. In addition, debt is added due to the use of credit cards and loans, and unforeseen expenses such as repairs or health problems.
Many of these difficulties are due to external factors, but we can work in our favor with some prevention so that the end of the month does not become so difficult. Necessarily, strategies to try to save start much earlier in the calendar.
Keep the accounts
One of the keys to starting to save is to understand and analyze income and expenses. This involves detailed tracking of every euro that enters and leaves the home, since awareness of what it is spent on is essential to detect possible areas where we can improve. It is useful to keep a monthly record, either through mobile applications or more traditionally with a spreadsheet or even a notebook. The important thing is that it is visible. This analysis will allow us to identify unnecessary expenses or those that could be reduced without significantly affecting our quality of life.
Define a monthly budget
A budget sets spending limits on categories such as food, transportation, entertainment, housing, and other current expenses. It is always advisable to allocate something to savings, although there are reports, such as the one cited at the beginning of this text, that indicate that three out of every four families in Spain find it impossible to do so. Setting aside some money not only helps in the long run to deal with unforeseen events, but also maintains motivation and facilitates good financial management. It is advisable to put the money saved aside at the beginning of the month, even if it is little. In this way, saving becomes a priority and not simply what is left after covering all expenses.
Review your contracts
Reviewing contracts for services such as electricity, gas, water and telecommunications can result in significant savings throughout the year. In many cases, changing providers or adjusting your rate can significantly reduce your monthly expense. Sometimes simply adjusting consumption habits, such as using appliances at times of lower energy demand or reducing the use of energy-intensive devices, can make a difference.
It is also important to review health, home or car insurance coverage, and compare them with other offers on the market. Many times, loyalty to the same company is not rewarded, and exploring other options can translate into considerable savings.
Save on food
In the area of nutrition, planning meals for the week is a strategy that not only contributes to healthier eating, but also helps control spending at the supermarket. Creating a weekly menu allows you to make a precise shopping list, avoiding impulsive purchases and unnecessary visits to the store. Additionally, it is helpful to buy essentials in bulk and take advantage of sales and discounts on non-perishable items. Cooking at home and reducing the frequency of eating out, whether in restaurants or ordering food at home, can have a very positive impact on the monthly budget. Preparing large quantities of food to freeze and eat later is also a way to optimize time and money.
Second hand shopping
Another way to save is through second hand and reuse. Instead of buying new items of clothing, furniture or appliances that we need, exploring the second-hand market or exchanging with friends and family can be an interesting option. Digital platforms for buying and selling second-hand products have gained popularity, making it easier to find items in good condition at a much lower price. Additionally, fostering a culture of repair rather than replacement helps keep finances healthy and reduces the amount of waste we generate.
Savings on transportation
Transportation is another aspect in which costs can be reduced. Opting for cheaper means of transport, such as bicycle or public transport, instead of depending on a private car, taxi or VTC, represents significant savings in money, gasoline, maintenance and parking. Share the car with others to make similar journeys through apps carpoolingis another alternative to reduce travel expenses. If the use of a private car is essential, it is advisable to maintain efficient driving, avoiding sudden acceleration and braking that increases fuel consumption.
Attention to subscriptions
The small everyday habits that we often overlook. Review subscription to entertainment services, such as streaming platforms streaming or gyms, and assessing whether they are actually being used enough to justify the expense is a good starting point. Sometimes by sharing subscriptions with family or friends, you can get the same services at a lower cost, and there are also free options. Renegotiating service rates and asking for discounts for loyalty or bundling of services (such as internet and mobile) can also result in significant savings.
All household members participate
It is very important to involve all household members in the savings process and make them participate. Explaining to children the importance of money management and giving them small responsibilities can encourage good habits from an early age. At the same time, looking for free leisure activities, such as outdoor walks, visits to museums with free admission, or local cultural events, allows you to enjoy free time without representing a significant expense.
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