Eight expenses that people who don’t save often overlook

Mismanagement of our personal economy can prevent us from saving. But, also, not having the habit of gold can lead us to spend more than necessary.

We will review a series of expenses that people who do not save usually overlook. In some cases, it is not so much about the expense itself, but about the way they deal with it.

Little thought expenses

Little thought expenses

It is a very common way of spending and at the same time, it is a real problem for the income / expense balance .

This type of purchase has to do with the consumer impulse and poor planning of the domestic economy. In general, it is based on the purchase of objects, products, or services that we really do not need.

A good example may be related to technology. The changes of mobile device when they are not necessary or the almost compulsive purchase of products that we already have, but that are offered to us with some slight improvements.

Bad planning of our monthly budget

Bad planning of our monthly budget

It is not an expense in itself, but it implies control or lack of control over all our expenses.

When we don’t plan our personal finances well, the tendency is to spend more than we really should. This basic principle can really help us with the set of expenses that we are referring to in this article. For this we only need two things: desire to rationalize our economy and a good budget adjusted to our economic reality. Of course, it is important to make a budget that really serves you .

Eat out

Eat out

In a world in which work is increasingly flexible and decentralized, eating at home has become a problem for many people, both because of the short time available at mealtime and because of the displacements involved.

Obviously, with a good budget, eating at home is always cheaper and healthier . However, a very high percentage of Spaniards eat every day away from home. Eating out is expensive, even with the best options we can find if we compare it with preparing food in our home and taking it to work.

Excess Services

Excess Services

The offer of services that can be accessed today is immense. From the basic subscriptions related to the consumption in our home, to all kinds of subscriptions, leisure services, etc.

The problem with these types of subscriptions is that we accumulate one after another, with amounts that can be relatively affordable, but in the end, in the sum of services we find a really high amount .

Here, as in everything, it is necessary to be reasonable and thoroughly review all the services and subscriptions we have . Streamlining this expense can save a good amount of our pocket.

Displacements

Displacements

It must be recognized that as technology has made it easier for us to move, we have become more and more comfortable in this regard. It is interesting that says that an adult in the 50s of the last century finished an average of 10,000 daily steps . At present these averages have plummeted, in fact, there is talk of averages below 3000 daily steps.

When we have to move, we not only talk about health, but also our pocket . Excessive use of private vehicles, in addition to contributing to an environmental problem, helps empty our pocket . Travel expenses are very high, especially in large cities. Using public transport, car sharing, looking for sustainable travel alternatives, or just walking if possible, are good tools to combat this expense can be very high.

Financial expenses bank fees

Financial expenses bank fees

Those people who have never reviewed their financial product contracts well, including such basic issues as bank accounts, can find true negative surprises, by accumulating costs, commissions and expenses that they might avoid.

These types of expenses are really easy to optimize. It is enough to thoroughly review the contracts of our pension plans, bank accounts, life insurance, etc. In those cases in which we do not understand the costs well, we must go to the entity in which we have contracted the product and ask to be specified.

On the other hand, it is necessary to avoid intensively in accumulating overdrafts in the accounts, or expenses related to interest for the misuse of credit cards. These are expenses that can be very high.

Excessive leisure expenses

Excessive leisure expenses

It is clear that leisure is necessary. However, we do not always measure well what we invest in leisure. The tendency to spend more than we need is a reality that affects many people. Part of the sense of reward we get when we invest in our leisure, and also, of an unclear perception of what we can really spend .

Spending at leisure is necessary, but doing it properly in our pocket is smart.

Spend on bad habits

Spend on bad habits

There are many bad habits that cost a lot of money a month . Surely you have trouble recognizing many of them. Let’s quote only one: tobacco.

A person who consumes a pack of cigarettes per day with a cost of five euros assumes an expense of not less than € 150 per month. It is an expense that also contributes to significantly damage our health.

In addition to improving our quality of life, saving this caliber can allow us to consider other types of activities in addition to maintaining savings. He thinks that those 150 euros per month become 1800 euros per year. Now think what you can do with those 1,800 euros, in addition to saving a part of them. There you have another reason to quit smoking.

Mortgages and Loans of Money for Real Estate Purchases – Payday Loans

When you buy a house, apartment or other immovable property, there is a minority who pay full price in cash. The most common is to finance the purchase through a combination of cash, a home loan in the bank and a loan on the property – a so-called mortgage.
You take out a mortgage from a serious loan provider, which gives you money to get a mortgage on the property as collateral for the loan.

What options do you have when you need to borrow money to buy a home?

loan

For the financing or purchase of a home, the cash payment usually represents 5 per cent of the price, 15 per cent the bank’s loan and the mortgage the remaining 80 per cent.

Home Loans
A home loan is more expensive than a mortgage, and is usually an interest rate of 6-10 percent.
Therefore, it may be well worth it after a few years to change your home loan with additional loans, which you are absorbed into a loan. It requires that the house price has increased, or that it has paid so much for the loan, which is the accumulated free value in housing.
If you buy a cooperative housing can also take a so-called cooperative mortgage where the Bank will put in the same ratio – such a loan may also include the right to installment.
Mortgage

With a mortgage, you can borrow up to 80 percent of the cash purchase price, in the case of a full-year home.
In summer and holiday homes, it’s that you can borrow up to 60 percent of the property.

The loan may mature in 1-30 years, but this will vary.

loan

In total, you can choose from three different types of mortgages:
Fixed rate bonds

With a fixed rate bond known the interest rate on loans throughout its length. It is debt interest, the day you buy them that determines how much you get paid.
Located in the bond rate 95, it means that you get paid 95 kroner to 100 kroner you borrow. In other words, there is an exchange loss of NOK 5 when we take out loans. It is therefore good if the price is as close to 100 as possible.
Fixed rate loans are usually more expensive than loans with variable interest rates. On the other hand, you can sleep more quietly at night, because we do not have to worry about interest rates rising.
Rentetilpasningslån

With an interest rate adjustment loan, the interest rate follows the market. When interest rates are low, the man achieves the lowest possible performance. On the other hand, you will never be sure what the future will have to pay interest on their loans.

The most popular interest rate adjustment loan is the so-called F1 loan to be refinanced once a year. This means that the interest rate on the loan is fixed once every year in December.

Loans with interest loss.

loan

The last form of mortgage loan is interest rate loan also known as collateral loan. With this type of loan attempt to combine the best of bonds and interest rate adjustment loans. The interest rate can be changed in line with the market, but only until it reaches the ceiling, for example, 5 percent – and then locked in the interest rate.
The interest rate on such loans is usually lower than on a fixed rate loan, but higher than in a variable. The interest rate on guarantee loans seen twice a year.

Interest-only
With a mortgage-free loan, only the interest and contributions of their mortgages must be paid on. It is possible to avoid paying mortgages of up to 10 years. The loan can, after 10 years, be replaced by a new installment-free salary, which will run for 30 years. In this way, it is possible that one period of validity will replace the other.
Deductible loans can be taken both as fixed rate bonds or interest rate adjustment loans.

MAMI loan
Within a few months, a new type of home loan in the market, the so-called MAMI loan – particularly broad bonds. It is the banks that issue new loans, which are comparable to traditional mortgages. With loans, which are beyond the maximum duration, will also have banks and savings banks to the issue of mortgage loans.

It is still uncertain whether interest rates will be lower than on traditional mortgages. On the other hand, it is common for MAMI loans to only be able to mortgage 70 percent of the home value – however, this limit is expected to quickly increase to 75 percent.

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Start saving using these apps to save

Cell phones can be our allies to start saving . And it is that in addition to using them to surf the internet, you can also download applications that teach you how to save money or, in any case, that help you have better control of your money.

This application to save draws the attention of those who have downloaded it, because it allows you to set savings goals . That way, from the amount you have proposed to save in 52 weeks, it puts you weekly challenges to reach the goal. Based on this, you could start saving the first week S / 10 and gradually increase the amount. Perfect for those who need to motivate themselves to save and love the challenges!

Saving Together

The app has very good recommendations in the store, and although it does not give you a 52-week term as the first one, it works based on the objectives you set for yourself.

With it you can calculate how much you should save each day to reach your goal, it also has an alert system so you don’t forget to save the money you touch, every day. To motivate you, the application also allows you to compete so you can win medals for being the best saver.

My savings

My savings

It is a simple but functional application, which will allow you to save according to your goals . A feature in favor of the app is that it allows you to enter the contingencies you have while you are saving, so you can deduct money if necessary.

Money Control

Money Control

With this application you will be able to control both your income and your expenses. That way you will know what you are spending the money on and how much you have left to save . To help you reach your goals, you can even record spending limits by categories – so you can save what you have proposed each month.

Kakeibo

Kakeibo

In a previous note, we have already told you about the kakeibo the method of saving that the Japanese love. If you can’t get Kakeibo’s booklet to start improving your finances, you can download the app. The best thing is that the application does not require internet connection and will allow you to have control of even the smallest expense. Of course, the app is in English so if you do not know this language you may have to wait for it to be translated into Spanish.

Did you already know these apps to save and improve your personal finances ? With them you can start saving and avoid borrowing for minor things! It is easier than making a personal budget. All the apps that I mentioned in this list are absolutely free, although of course they will come with the occasional ad included.

Alternatives to finance your new car

We are already at the gates of summer, the time of the year in which there are more sales of vehicles in our country. According to the Institute of Automotive Studies (IEA), June and July concentrate 20% of all car sales throughout the year. This is because summer is the time when we use the car the most and trips to the beach are a good opportunity to shoot our new vehicle.

 

Pre-owned cars in Spain 

Pre-owned cars in Spain 

According to data from the automobile sector, 8 out of 10 purchases of new or “pre-owned” cars in Spain are made through financing. No wonder, since this is the second most important expense for most people, after housing. But what alternatives does the market offer to finance our new car?

Until recently, it was normal to go to the bank to request this type of financing. In fact, these entities have special credits and are exclusively for the purchase of vehicles. Although they usually include the contracting of products that we do not really need for the purchase of a car (direct debits, insurance, cards) and other aspects that end up making the final cost of the loan more expensive.

In the wake of the economic crisis, the banks stopped giving so many loans and most brands and dealers picked up the credit witness, providing the money to their customers to finance the purchase of their cars.

 

The conditions of the credits

car loan

It is offered by the financial brands, have always been characterized as being worse than those of traditional banks. Although the need to sell cars has made manufacturers offer greater flexibility to adapt to the needs of their customers and lower credit interests.

Another option, increasingly extended, to finance the purchase of our car is the participatory financing platforms (P2P) that connect people who want to finance themselves with others who want to make their savings profitable. These platforms study the viability of the loan and only approve the cases of solvent people. Thus, non-payment situations are avoided and the main reason that increases the price of credit, delinquency, is reduced to the maximum.

Regardless of the type of financing we choose to finance our car, the most important thing is to be clear about the budget we have and our solvency to face the loan and not compromise our personal economy.