Save Hundreds of Euros
admin October 19, 2021

Everyone wants to save money, and that is why people create a budget. Budgeting helps you cut back on overspending and save hundreds of Euros, so you can manage to stash away more money for a rainy day. However, it is not that easy. Not only do you have to create a budget, but you also have to stick to it.

Further, you have to achieve your goal. Some people find it so hard that they give up in the middle because the goal they set seems to be beyond their reach. Setting short-term goals and achieving them is one thing, and setting goals that overhaul your whole financial situation is another.

If you decide to set aside €500 within two months, you may do it quickly, but it will be a marathon if you have to put aside a deposit for your mortgage within three years. This is because you have a long way to go, and your financial condition is not going to be the same throughout.

Financial emergencies can put a break in your journey. For instance, suppose you lose your job and take out doorstep loans for the unemployed to fund your needs. This will surely hamper your budget and delay the stage of achieving your financial goals.

This is why it becomes challenging to meet long-term financial goals. You can use certain tricks to save hundreds of Euros, so you do not give up in the middle.

Tricks to Save Hundreds of Euros Each Month

Try to live a debt-free life

It is crucial to living a debt-free life if you want to achieve your financial goals on time. When you have a debt to pay off, you do not have just to pay what you borrow but interest on top of that. For instance, if you have borrowed €100, you will likely be paying €300 at the end of the term because of interest and other processing charges.

Now you can see you will be paying three times more than you borrow, and if you fail to meet your obligations on time, the loan will roll over, and you will find its impact in compound form. This is how your savings quickly shrink.

Likewise, if you have taken on a lot of money, you will end up paying a lot of money in interest than you could otherwise put toward your financial goal. So, try to live a debt-free life. You should settle all of your debts as soon as possible.

Make sure that you pay them off on time and build an emergency cushion so you can dip into it when next time you come up with a financial emergency. When you live a debt-free life, you can save a lot of money. If you have fallen into a debt circle, you can take the following measures to get out of it:

  • You should talk to a debt management company so they can negotiate with online lenders on your behalf. It will likely be easier to follow the repayment plan that they propose to you.
  • Talk to your lender if they agree to accept minimum repayments. Tell them about your true financial condition. Note that the interest will accrue on the remaining balance.
  • Think about which method will work to your advantage – debt avalanche or debt snowball.
  • Consult a financial manager once you are out of debt to know how you can restart your budgeted financial life.

By following these ways, you can manage to come out of debt.

Refinance your mortgage

Refinancing a mortgage is a better way to save a lot of money. In the beginning, people take out a fixed-rate mortgage that lasts for two to five years and then they are put on a standard variable interest rate, which is quite expensive.

However, you can avoid paying this much money if you think of refinancing your mortgage. You can do it either with the same lender or another lender. Refinancing can help you avail yourself of lower interest rates for your mortgage because you may have improved your credit rating by paying your monthly payments. As a result, the total amount of mortgage may have been reduced.

Secondly, you must have built equity. You are in a more favourable condition, so you will likely refinance your mortgage at a lower interest rate.

However, note that you will have to go through the entire process conducted when you take out a fresh loan, which involves a credit check.

Do some research before applying to a lender because not all lenders offer good interest rates. A couple of lenders, including Microfinance in Ireland can offer you a refinance deal at affordable interest rates.

Look at your regular expenses

When it comes to achieving your long-term financial goals, you need to look at your small expenses too. Refinancing a mortgage and living a debt-free life can undoubtedly help you save save hundreds of Euros, but there is room in your daily expenses as well.

Make sure that you consider all of your expenses to know how much and where you are spending. You cannot achieve your goals if you have been lenient with your daily expenses. The first thing you need to look at is the subscription. Subscriptions can be a waste of money if you are not using them. Make a list of all subscriptions, so you know how much money you pay for them. Ask yourself whether you need all of these subscriptions.

For instance, you may have a cable subscription along with a streaming subscription. There is no use in paying for your cable subscription if you do not watch TV. Do not forget to take into account other subscriptions like gym subscriptions, magazine subscriptions, and the like. It is not unusual to sign up and forget about that later.

This is why it is crucial to look at your monthly subscriptions and then find out which one you can opt-out of. The story does not end here. Next thing you need to look at your discretionary expenses, including meals you eat at the restaurant.

Discretionary expenses are inessential expenses. It includes the money you spend on your fun, entertainment, and so forth. You should find out how much money you have been spending on these things. It does not mean that you cannot spend money on fun and enjoyment, but it must be to a specific limit.

For instance, if you eat at the restaurant every weekend or more often, you should avoid it. Home meals can help you save a lot of money, especially if you see its monthly or annual impact on your budget. You can transfer what you save by cutting back on your restaurant meal to your emergency funds.

Further, you should try to find out how you can cut back on other expenses. For instance, you can buy groceries in bulk, provided they do not go off before you use them.

Thrift stores are the best option to save money. Do shopping when you need to buy things. Impulsive purchases can ruin your budget.

The final word

If you want to save hundreds of Euros each month, you should follow the tips mentioned above. You will have to be very careful about your financial behaviour.

Create a budget, reduce your overspending, build an emergency cushion, avoid taking on debt, refinance a mortgage for lower interest rates, and look at your regular expenses.

If you carefully spend your money, you will be able to save a lot of money for your future goals. Whether you have set short term goals or long term goals, you will have to be very careful about your spending. The more carefully you use your money, the better it is.