Good habits to balance your budget
Start by drawing up a detailed monthly budget. List your income and expenses to get a clear picture of your financial situation.
Save by adopting the 50/30/20 rule
Divide your net income as follows:
- 50% for basic needs (rent, food, bills)
- 30% for leisure and personal expenses
- 20% for savings and debt repayment
Automate your savings
Set up an automatic transfer to a savings account as soon as you receive your salary, and then forget that the money’s there 😉. If you tend to dip into your savings, opt for a locked-in savings account, which will often earn you more interest.
Set up an emergency savings fund
Aim to save at least €500, but ideally a financial safety net equivalent to 3 months' salary.
Zelda, your little Jack Russell , has swallowed something she shouldn't have. Ouch, unexpected vet bills that you haven't budgeted for this month.
It's important to have direct and easy access to your savings, so that you can cover any unexpected expense.
Cut back on unnecessary outgoings
Identify non-essential expenses and try to reduce them (unnecessary subscriptions, impulse buys).
If the shopping basket on your favourite fashion website is brimming over with those must-have items , wait at least 24 hours before confirming your order. Maybe you'll forget about it, realise that your wardrobe is already full to bursting, or that it's simply not reasonable - after all, you only recently had to replace the fridge when it gave up the ghost.
To avoid temptation, sort out your various newsletter subscriptions and don't hesitate to unsubscribe, so that you’re not lured by the promises of the next private sale.
What's the ideal amount of savings for your income?
Once you've deducted your current and regular expenses, such as rent, mortgage repayments, subscriptions, transport, insurance, food shopping, leisure and holidays, you can take this available amount and save all or part of it.
In short, you can put away the following amounts:
- If you earn between €1,500 and €2,000 a month, you can save 15%.
- If you earn between €2,000 and €3,000 a month, you can save 30% of your income.
- Finally, people earning more than €3,000 a month can save 35%.
Long-term savings: finance your projects, your future and take advantage of tax benefits
A number of banking and insurance products allow you to save for the long term, while benefiting from significant tax deductions.
Becoming a homeowner
Do you have your sights on buying property in the future, in the medium or long term? Opt for a home savings plan.
By signing up for a home savings plan, you can receive a loan on attractive terms to finance your own home, in exchange for the payment of contributions.
Under certain conditions, contributions paid into a home savings plan are tax-deductible as special expenses.
