Almost every one of us has certainly come up with a situation where we should get a loan as quickly as possible. Amidst the hurry and stress, it is easy to forget to bid on loans.
This oblivion can be costly as interest rates on loans can vary by tens of percent. Below are four good tips to avoid the need for sudden money.
Save the Buffer Fund for a bad day
The best way to avoid Matt in your purse is to save in a “savings buffer”. Savings buffer refers to a separate bank account or fund that is saved for future larger purchases or just for unexpected expenses. Easier said than done, but even with small everyday choices, you can save surprisingly large amounts on an annual basis. Cooperative Bank is already offering its customers a savings ticket that you can save in a very interesting way.
The savings box allows the account holder to turn on automatic saving, which transfers a predetermined amount from the card to the savings box each time a card is charged. For example, if you set the automatic saving amount to one euro, then every time you make a purchase, the euro will be transferred to the savings box. Many of us make tens of purchases a month, so the savings can be surprisingly quick.
Revenue & Expenditure Budgeting
Another way to plan for unexpected expenses is to monitor your own finances. Nowadays, this can be done almost automatically by various applications. So keeping track of your finances no longer has to be a matter of keeping shopping receipts and filling out Excel.
By using applications like Pivo or Tink, you can see in real time what you spend, and also where all that money is spent. Budgeting is easy with these apps. For example, you could set a monthly budget of $ 50 for clothing purchases. The app will always notify you if you are approaching or exceeding your budget.
Tendering for contracts
The third way you can save significant amounts is by tendering different types of contracts. Surprisingly, many things can now be made cheaper. The most popular competitive bidding items are probably mortgages, but there are significant savings a year when you can also bid on more casual issues such as telephone, online, insurance, e-contract and car service.
Competitive shopping can also be done with everyday food purchases, by choosing a cheaper product called so-called. Instead of a “branded product”. In many cases, a private label is slightly cheaper than the original branded product, even though it is exactly the same product, except for the packaging.
Save and invest every month
The fourth way requires patience and systematic approach. When properly implemented, it can be a ticket to financial independence, but it is by no means easy. The idea of monthly saving and investing lies in the fact that, while saving and investing the same amount every month, there is also a time spread over the so-called trading.
Saving on shares with small amounts of less than € 1,000 makes no sense because trading costs eat up too much of the savings. Most do not have the opportunity to save thousands of euros every month, so for many people, monthly savings directly on shares are impossible. Fortunately, there are funds available that can save you a few dozen a month. For example, a fund marketed by Good Finance can be used to automatically deposit bonuses. However, the fund offered by S Bank is more expensive, so consider ETFs, which are considerably less expensive.