How to Reach Your Savings Goals

Are you frustrated by not meeting your savings goals? We have a few suggestions to make it easier for you.

Determining how to save monthly can help you reach your savings goals. The hardest part is getting started! Once you find the tips and tricks that are right for you, saving could become a habit.

Read on to discover the secrets of monthly savings and start improving your financial situation today.

Save every month

Of course, how much you want to save each month depends on your lifestyle and your salary, but learning to save is also a state of mind. To embrace it, you need to set up saving habits that don't require you to sacrifice anything that pleases you.

But then, how to save? Once you've factored in your monthly income, expenses, and savings , it's important to allow yourself a little leeway to indulge yourself, within reason. Be careful not to be too hard on yourself, or you can quickly become demotivated.

Avoid all or nothing

The idea of having all or nothing tends to manifest itself in two ways. When it comes to saving, you either meet or exceed your savings goals or you save nothing at all. This is also often the case with an overly strict diet; either you reach your diet goal, or if you miss your target slightly, you may start to binge eat because your goal seems impossible to achieve.

In other words, if your savings goals are too ambitious, there is a good chance that you will fail. If you can't reach your monthly goal, you're unlikely to stick with your savings plan. This mindset is very counterproductive, since even saving only € 1 per month is better than nothing!

The trick is to find the right balance to make your savings goals an interesting but not impossible challenge, so you don't get discouraged if you don't reach your goal a month later. Think of your savings as a long-term investment. Even if there are unforeseen events along the way, it is always better to save.

The 50/30/20 rule

To better manage your budget, the 50/30/20 rule can be a useful budget method . Created by Senator Elizabeth Warren when she was a law professor specializing in bankruptcy law, the 50/30/20 rule suggests dividing your monthly expenses according to the following rules:

50% of your budget for your "needs" such as rent, charges, credits;

30% for your "desires" such as restaurants, sports or vacations;

20% for your savings goals

How much should I save each month?

Under the 50/30/20 rule, you need to save 20% of your income each month. If you have a regular, fixed income, one of the smartest ways to save is to automate your spending every month. For this, you must automatically pay 20% of your monthly income into your savings account.

This way, your money does not stay in your bank account which reduces the likelihood of you spending it.

What is the average monthly savings?

According to Eurostat, the average monthly net income of an EU citizen is € 1,473. If we apply this figure to the 50/30/20 rule, we get the following breakdown:

€ 736 for needs (i.e. 50% of income)

441 € for cravings (30% of net income)

€ 294 for savings (i.e. 20% of net income)

According to these figures, if the majority of European citizens followed the 50/30/20 rule, the average monthly savings in Europe would be around € 300, or roughly € 3,500 per year. For many, this would constitute an important emergency fund , or contribute significantly to the repayment of unpaid debts.

Our tips for saving every month

Now that you have an idea of how much you need to save each month, here are some tips on how to do it. But remember, while all of the following methods are a great way to save serious money, trying to do too much too soon can be counterproductive.

Start by choosing the tips that are available to you, and then, once they become habitual, start incorporating other savings methods into your routine.

Start paying off your debts

It might be frustrating to hear, but until you pay off your debt, it will be difficult for you to save properly. However, if you use the 50/30/20 rule and devote 20% of your monthly income to paying off your debts, you should be out of the red quickly.

This is good news for your bank balance, but also for your mind, as it will give you a greater sense of financial independence.

Save on your charges

Reducing your expenses each month can save you a considerable amount of money. The main culprits are your gas and electricity bills. You should therefore make a habit of regularly comparing suppliers to get a better deal.

Additionally, you should consider:

Switch to LED bulbs, as they consume 90% less energy than standard models.

Replace devices that consume too much energy.

Regularly monitor your energy consumption to identify where you could reduce your consumption.

Do not leave electrical appliances on standby.

Save on your shopping

There are many ways to reduce your shopping budget . Start by planning your meals for the week so you know exactly what ingredients to buy before you hit the store. By sticking to a shopping list, you're more likely to stick to a tighter budget.

Another great tip is to do some mental math while shopping, every time you add something to your cart, calculate the cost of your items. If mental math isn't your thing, use your phone's calculator to help you with this task.

However, perhaps one of the best tips is to avoid shopping when you are hungry. Nothing will make you stray from your grocery budget more than an empty stomach pushing you to fill your basket with expensive snacks.

Reduce your phone bill

Reducing your monthly phone bill can quickly save you big time. There are several ways to achieve this:

Before buying the latest phone model, ask yourself is it worth it, especially if your current phone is still working.

When buying a new phone, pay for it up front rather than including the price of the phone in your monthly bill, as carriers often increase prices this way.

Compare operator prices until you find the best deal.

Before taking a plan that includes a multitude of features, ask yourself if they will really be of use to you.

Cancel unused subscriptions

Many operators derive most of their profit from subscriptions. Why ? Because once people buy into it, the idea of canceling seems too laborious, when in reality it's usually straightforward and can save you a lot of money. Ask yourself the following questions when considering continuing to pay for a subscription:

How often do you use this subscription?

Is there a cheaper alternative?

Does this subscription have an impact on your daily life or could you live without it?

If you don't use your subscription often, or there are cheaper alternatives, or you can do without, then cancel it.

Buy used products

If you need to buy a new item, consider buying it used . Without losing too much quality, you can often get a good deal while saving a lot of money, but you have to be patient.

Whether you're looking for second-hand clothes at thrift stores or specific items in online marketplaces like eBay, you'll need to keep your eyes peeled for the right deal. However, once found, you will be delighted with the savings you have made.