It is very important to save up when back home from summer holidays in order to achieve your ‘new school year’ objectives. In fact, if January and September have one thing in common that is many decide to tighten their belts and try new projects during these months of the year. And one of the most worrisome things for Spaniards is bearing property costs, be that of mortgage payments or rent for a flat.
In this sense, Tecnotramit wants to give you some advice to start a smart financial plan that will allow you to reach your goals.
Prepare a detailed budget: First of all, you must understand your income and expenses. Make a budget and include all fixed costs, such as mortgage payments, utilities, public services, insurances, and food. Also include variable expenses, like entertainment, eating out, and trips.
Specify a savings goal: Once your budget is set out, establish a realistic savings goal. Try and save a portion of your income before spending it on other things. Arrange for automatic transfers between your current account and savings one. This will force you to save before spending.
Reduce unnecessary expenses: Identify areas in which you can reduce expenses. From cancelling subscriptions you no longer use to reducing entertainment costs, but not forgetting to research more budget-friendly alternatives for your everyday needs.
Renegotiate current costs: Review your utility bills and negotiate with providers to obtain lower rates.
Review your mortgage: Check with your bank if you can refinance your mortgage to a lower interest rate. It could be very interesting given today’s context.
Set an emergency fund up: An emergency fund can help deal with unexpected expenses without turning to a credit card and free up money to set aside for your property.