Living is not free. It seems that everything costs more than it should and, without even knowing how, the salary goes away in an instant. If you want to find ways to make it last longer, you've come to the right place. By eliminating unnecessary expenses and finding cheaper shortcuts, you can save a lot of money in several areas. Whether you want to change your entire lifestyle or just make small changes, saving money will benefit you in the long run.
Steps
Part 1 of 6: Determine the Major Expenses
Step 1. Category the products and services you use
The bulk of the expenses are home, utilities, entertainment, clothing, food, travel, and medical treatment. First, check the checks you've written and your bank statements from the last few months. Add up the total expense of these general categories and others that relate to your specific case.
- Banks and other financial institutions give you the opportunity to consult an account statement that summarizes the expenses made over a certain period of time, also indicating the names of the companies where you spend your money.
- If you don't use debit or credit cards, carefully record your monthly expenses. For example, keep track of how much you spend on food, whether it's grocery shopping or restaurant meals.
Step 2. Analyze your spending habits
After gathering this information, compare the total sums of each category. Do they seem reasonable to you, especially in relation to the overall salary?
Step 3. Establish a budget
Set yourself a monthly goal to determine how much money to spend on each category. Read this article to find out more.
- Set a goal for your retirement savings. Start by saving at least 1% of your monthly income in this regard. The more money you save, the better you'll be once you reach the third age (if you don't think it's important, talk to someone who is already retired).
- Generally, finance experts recommend spending less than 30% of your salary on housing. In some places, however, this is not a realistic goal. If this is the case, it may be necessary to change neighborhoods or cities.
- In addition to saving for retirement, open a savings account to have an emergency fund. Save an amount that allows you to live without working for about six months: it will come in handy if you lose your job or have a disability.
Step 4. Look for ways to save
Plan your expenses, you will realize in which areas the expenses must be limited. Find ways to save in these categories. Take care of the biggest expenses first.
For example, if you pay 900 euros in rent a month and spend another 300 on food, you may want to look for a cheaper home. If you pay off your mortgage, you might want to try refinancing it at a lower interest rate. In the meantime, look for ways to keep food costs down. Don't eat at the restaurant. Try recipes based on nutritious but inexpensive ingredients
Part 2 of 6: Save on Food
Step 1. Prepare your own meals
It is ideal for saving on food. Many people bring pre-cooked and prepackaged products to the table even when they eat at home. Sure, they are practical, but also quite expensive. Purchase the necessary ingredients and prepare everything from scratch.
- Buy fresh, unprocessed ingredients rather than ready-to-eat products. For example, if you buy traditional rice instead of pre-cooked rice, you will prepare more food for a lower cost.
- If you eat large portions, reducing them at least partially can save you money. Try to keep leftovers. Don't intend to eat them right away? Freeze them.
- Try new flavors and spices. A fish fillet or chicken breast can quickly become tastier with a different sauce or seasoning. Try an unfamiliar spice, or buy a condiment at an exotic store or local produce market.
Step 2. Go shopping using a list
Write down the products you need. Buy only what is indicated by the above list. If you buy on impulse or put items in your cart that you don't really need, the bill can double or triple.
- Don't shop when you're hungry.
- If you create a weekly menu, take this into consideration when writing your shopping list. Respect it all week.
- Use coupons. A good strategy to save? Look for discount coupons from certain stores or products and use them as a basis for planning meals. For example, if you find an offer to make meatballs, you could cook them for dinner. If you find one for sandwich bread, you can make bread pudding or French toast.
Step 3. Buy filler foods that allow you to enrich your meals
There are inexpensive and healthy products that make a relatively small meal more filling. For example, if you have ready-made beef stew and buy potatoes, more people will be able to eat. Other examples include rice, pasta, quinoa, and couscous.
Step 4. Eat out less often
Food in restaurants is usually more expensive than what you eat at home and this expense can immediately affect your salary. Cooking and eating out less often will save you a lot. The same goes for coffee. Make it at home instead of going to a coffee shop or vending machine.
- Read the menu before going to dinner, otherwise, if the prices are higher than expected, you risk feeling in trouble and regret it.
- Take the leftovers home and you'll have another ready meal right away.
- Look for promotions and fixed menus at special prices in restaurants. Some places offer free or discounted children's meals, others for policemen, senior citizens or active members of the military.
- Drinks, especially alcoholic ones, can drive up the cost of a meal. Limit it and you will save on the account. Prefer water.
Step 5. Buying non-perishable items in bulk is ideal for saving money
Think pasta, canned goods, dry canned foods, spices, oils, frozen foods, and household items like toilet and kitchen paper. In Italy, you can buy wholesale in chains like Metro.
- To become a customer, you must have certain requirements and apply for a card. You will find more information on the Metro website. You could then share the supplies with a friend or family member.
- Another idea is to start a food consumption cooperative with families in your neighborhood. You will be able to save by dividing purchases and buying in bulk. Read this article to find out more.
Step 6. Grow your own food
If you have the time, the most effective way to save on food is to grow it yourself. Simple crops like lettuce and other leafy greens are ideal even if they don't have a garden (a balcony or even a window is enough), so they don't need too much effort. Save even more by investing in perennials that yield year after year, such as fruit, herbs and berries.
Step 7. Take advantage of the food assistance offered in your area
If you can't do the shopping, there are programs to make sure you can always have food on the table. You can apply for government assistance, but there are also non-governmental organizations that offer help without applications or income restrictions. If you're having trouble, don't be afraid to ask for help, even if it's just for a while.
In Italy, you can go to a food bank or find out about the Fund for European Aid to the Most Deprived. To find out more, contact a charitable organization in your area. Often the requirements for getting help are less stringent than you might imagine, not to mention that there are also partial support options
Part 3 of 6: Saving Money on the House
Step 1. Consider moving to a cheaper neighborhood or city
It can be difficult, but sometimes just moving a few blocks can save you a lot. If you have the opportunity to move to the outskirts of a large city or to a less expensive area of the country, you can significantly reduce your expenses.
- Approach the place where you work. You could save on home and transportation.
- Take a look at sites like www.casa.it to find out the prices of the various neighborhoods and compare them with the one you live in. You may find that where you live you are paying way too much.
Step 2. Negotiate with the landlord
If you've always been an impeccable tenant and neighbor, the landlord may meet you if you tell him you're thinking of leaving because of the cost of the rent. Use www.casa.it or similar sites to make comparisons and prove that the fee is too high. Offer to renew the contract for a lower price.
Step 3. If you have your own home, save on the costs involved
The mortgage may be the monthly expense that most affects a person's expenses. Finding ways to lower this cost can radically improve your financial situation.
- Buy a property owned by a bank. These properties are usually foreclosed and the bank does not want to keep them, so it could auction them at a lower price than market value.
- If you have had a mortgage for several years, you could refinance it and find a better interest rate. To keep costs under control over the long term, keep the original date that was set to complete the payment, but with a lower interest rate you will reduce the monthly payments.
- Consider a micro-dwelling. Space is limited, but it weighs less on the wallet. Find out about the manufacturers in Italy and ask for a quote.
Step 4. Look for a housing assistance service in your area
If you are having trouble finding a house at a price that suits you, there are subsidies for those with an income below a certain threshold. These services help you find a home or even pay a portion of the rent. Find out about the support offered in your province or region.
Part 4 of 6: Save on Bills
Step 1. Stop paying to watch television
This cost can have a big impact on your outings. Solutions like Netflix offer more entertainment at a fraction of the cost of digital terrestrial or satellite. Internet TV is always the cheapest alternative.
- If you have a computer, use an HDMI cable to transfer what you watch on the PC to the television (you can do this even if you just want to listen to music).
- Many channels offer streaming programs, sometimes live, others delayed. That way you won't need the television.
- You can find sports or entertainment programs in this mode.
Step 2. Save on mobile
It can make you waste a lot of money. If you're planning on saving money, there are various low-cost options. Several mobile carriers offer rechargeable plans without a subscription, which cost significantly less. If you have a disadvantageous contract, switch to a service that is more suited to your needs, but remember that in the event of a time-based contract constraint, you will have to pay a penalty. In any case, with a little research you can find out how to reduce the amount you pay each month for your mobile.
Step 3. Insulate your house or apartment
If you live in a cold area, you risk paying more than you need for heating. By properly insulating your home, you will save a lot of money to heat it and have hot water.
- Simply hang heavy curtains to keep the heat from dissipating at night, seal the windows and place a draft excluder at the base of the entrance door to save on heating.
- Replace boilers, radiators, appliances, windows, doors, insulation materials, and other parts of the home with energy-efficient alternatives. They will be expensive investments initially, but they will pay off in the long run.
Step 4. Lower your power consumption
Most household appliances, such as washing machines, dryers, dishwashers, refrigerators, and air conditioning, consume a lot of energy, so they could add to your electricity bill. Make sure you use them as efficiently as possible and you will see that they will have less of an impact on your monthly expenses.
- Never leave the refrigerator door open or start an almost empty dishwasher. Use the washing machine for full loads instead of a few clothes. Even these small precautions promote greater energy efficiency.
- Switching to more efficient devices can reduce costs even further over time.
- Read this article to find out more.
Step 5. Limit the use of larger electronic devices
If you use large screens or other large electronic items very often, reducing their usage can save you even more.
Use one electronic device at a time. Don't leave the television on when you are at the computer
Step 6. Change your energy source
If you change your lifestyle and manage to generate electricity on your own, you can say goodbye to the electricity bill. Solar panels, wind turbines and water wheels can also be used by individuals and are now cheaper than ever.
- In an energetically autonomous house, electricity is never lacking, even during blackouts. You don't even need a large amount of sunlight to amortize the cost of the panels. For example, consider that they are extremely common in Germany, where the sun is seen less often than in cities like Seattle (known for having over 200 days of rain a year).
- The choice of installing a photovoltaic system depends on the needs of your home. Search for a quote for your specific case. You can apply for a loan or financing and get tax deductions.
- If you produce more electricity than you use, in some cases the company that distributes electricity can pay you for this extra. Either way, it's a viable solution only if you actually save some money in the long run. Be well informed about renewable energy systems.
- Alternatively, you could choose another energy supplier to pay less. However, it is a viable solution only in deregulated markets. Find out about the operators working in your area.
Part 5 of 6: Having fun with Poco
Step 1. Take advantage of the free resources offered by your city
Look for inexpensive or free events sponsored by the city hall, province or region. There may be more of them than you imagine. Inquire at the pro loco to find interesting activities for you and your friends.
For example, you may find that a community center screens movies every Friday night or that there is a free music festival in the park over the weekend. In some places, there are courses that are free or funded by donations. Many cities sponsor free art exhibitions once or twice a year. Museums offer free admissions from time to time
Step 2. Invest in board games
They are ideal for having fun at no cost, or almost. After the initial purchase, the fun will be free virtually forever. You can invite your friends, offer grocery-bought food and drinks, and have as much fun as an expensive night out.
- Try classic games ("Game of Life", "Monopoly", Sorry ") and new ones (" ZhanGuo "," Settlers of Catan "," Ticket to Ride ", etc.). You can organize a weekly game night with your friends, with rotating invitations.
- "Cards Against Humanity" is another good way to save money because you can download it for free. It may not be suitable for a younger audience (or politically correct people), but many find it quite funny.
Step 3. Read more
Reading is fun, cheap (or free) and great for making good use of your time.
- Start with easy-to-read classics like "Harry Potter" and "Game of Thrones" if you haven't been in the world of literature for a while.
- Get a library card. Borrow books for free. With an e-reader, you can also do it with e-books.
- Low-cost used books are available online and in many bookstores.
- In addition, many older public domain books are freely available to be read online or downloaded to an e-reader.
Step 4. Plan a movie night at home
Instead of buying expensive movies to watch alone, set up a small cinema in the living room for friends and family. Ask everyone to make a small contribution to throwing a big party, complete with movies, popcorn and games. You will have the opportunity to get hold of movies for free or for less and have fun with your friends.
Step 5. Travel cheaply in Italy or abroad
You don't have to spend a fortune to do this. There are many tricks to limit expenses and make the trip cheaper than you could imagine.
- Choose carefully where to stay. Evaluate hostels, Airbnb rooms, and campgrounds to save on accommodation.
- Plan your trip in advance to save on the overall cost. Organizing it early will make it even more fun and when you arrive at your destination you will be more informed on the spot.
- Travel in the off-season, when flights are cheaper. You can search for tickets, find bargains, and buy at least six weeks in advance. In this way, even if you are traveling in high season, you will pay less than usual.
Step 6. Choose the less traveled places
Tourist areas are usually expensive, but you can get good deals in the more secluded ones. This type of experience guarantees more adventures and authenticity than classic monuments.
Part 6 of 6: Other Changes
Step 1. Pay attention to credit cards
For a healthy approach, have as few credit cards as possible and use little. Since you risk wasting a lot of money on interest, paying for credit cards must be a priority. Deal with it every month. If you can't manage it, at least pay the minimum that is required of you monthly. Use them only for small transactions. Getting rid of it completely is the most suitable solution for many, as using it can encourage them to spend more than their own financial resources allow.
Step 2. Buy in thrift stores
You don't have to buy everything from them, but before you buy expensive products, learn how to find your way around thrift shops and sites. You can often find new items or nearly half the regular price.
- Look for offers like "All coats half price on Tuesday" or "All items with the pink tag are 50% off". Remember that everything you buy on sale is a bargain only if you have spotted it at full price and you already intended to buy it.
- Before making a purchase, always do some research online to make sure you are getting a good deal.
Step 3. Look for cheaper means of transportation
The car costs. By changing the way you travel, you can save a lot of money. If you live in a suburban area, it can be tough, but you should still think about some options for using your car less often, even without leaving it altogether.
- If you use public transport, it will probably take longer to get to your destination, but you can take advantage of these moments to drink coffee, read the news, check email or talk on the phone. A monthly bus pass is usually cheaper than filling up the car, not to mention the installments to pay for it, the vehicle registration document, insurance, maintenance and repairs.
- Try cycling or combining bikes and public transport. Most buses and trains allow you to transport it, so you can use various means to speed up the journey as much as possible. Cycling allows you to keep fit and save on gasoline.
- You could buy an electric car, but you could also replace your car with a smaller one or one that you can pay for in cash. These solutions will save you money.
Step 4. Look for a second job
There are several ways to earn extra while already having a full-time job. Some even manage to turn a hobby into a part-time job, such as freelance writing, selling handmade products, or buying and selling antiques. These additional earnings can be set aside or used to make ends meet.
