63% of Spanish households have difficulty making ends meet, according to the Family Solvency Index of the Organization of Consumers and Users (OCU). The study highlights the difficulties faced by families in covering basic expenses such as housing, health and education.
Not making ends meet is a complex problem because it is caused by a combination of factors. The slowdown in the rate 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 ones. responsible. Additionally, debt is added due to the use of credit cards and loans, as well as unexpected expenses such as repairs or health issues.
Many of these difficulties are due to external factors, but we can work in our favor with a little prevention so that the end of the month does not become so difficult. Obviously, the 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 comes in and out of the house, as it is essential to know what it is spent on to detect possible areas in which we can improve. It is useful to keep a monthly record, either via 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.
Set a monthly budget
A budget sets spending limits in categories such as food, transportation, entertainment, housing, and other living expenses. It is always advisable to devote something to savings, although some reports, such as the one cited at the beginning of this text, indicate that three out of four families in Spain find it impossible to do so. Putting money aside not only allows you to cope with unforeseen events in the long term, but also maintains motivation and facilitates good financial management. It is advisable to put aside the money saved at the beginning of the month, even if it is not significant. This way, saving becomes a priority and not just 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, switching providers or adjusting your rate can significantly reduce your monthly expenses. Sometimes, simply adjusting your consumption habits, such as using appliances at times when energy demand is lower or reducing the use of energy-intensive appliances, can make a difference.
It is also important to review health, home or automobile insurance coverage, and compare it with other offers on the market. Often, loyalty to the same company is not rewarded and exploring other options can result in considerable savings.
Save on food
In the field of nutrition, planning meals for the week is a strategy that not only contributes to a healthier diet, but also helps control spending at the supermarket. Creating a weekly menu allows you to make an accurate shopping list, avoiding impulsive purchases and unnecessary trips to the store. Additionally, it helps 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 eating out 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 save time and money.
Second-hand shopping
Another way to save money is to second hand and reuse. Instead of buying new clothes, furniture or appliances that we need, exploring the second-hand market or trading with our friends and family can be an attractive option. Digital platforms for buying and selling used goods have grown in 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 maintain healthy finances and reduces the amount of waste we produce.
Transportation Savings
Transportation is another aspect where costs can be reduced. Opting for cheaper means of transport, such as cycling 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 take similar trips via apps carpoolingis another alternative to reduce travel costs. If the use of a private car is essential, it is advisable to maintain efficient driving, avoiding sudden accelerations and braking which increase fuel consumption.
Beware of subscriptions
The little daily habits that we often neglect. Review subscription to entertainment services, such as streaming platforms streaming or gyms, and assessing whether they are actually used enough to justify the expense is a good place to start. Sometimes, by sharing subscriptions with family or friends, you can enjoy the same services at a lower cost, and there are free options as well. Renegotiating service prices and asking for discounts for loyalty or bundling services (like internet and mobile) can also generate significant savings.
All household members participate
It is very important to involve all members of the household in the saving process and make them participate. Explaining to children the importance of financial management and giving them small responsibilities can encourage good habits from a young age. At the same time, seeking out free leisure activities, such as outdoor walks, museum visits with free admission, or local cultural events, allows you to enjoy free time without being a major expense.
