The expenses that must be faced on a daily basis are numerous and it is difficult to reduce them; however, with a little planning, you can optimize your income to save money.
Here are some practical and simple tips to better manage your finances and reduce your monthly outgoings.
1. Debt Consolidation
Saving on fixed expenses, which are faced on a monthly basis, can often be complicated, however thanks to some tools it is possible to do it in complete simplicity; in this regard, debt consolidation is particularly useful if you have several loans and financing assets, as this formula allows you to merge the installments of the debts contracted into a single installment, defined on the basis of your possibilities.
In fact, if you pay off your loans with a debt consolidation loan, it will be sufficient to pay a single monthly installment, which will make it easier to define the outgoing sums and organize expenses accordingly.
2. Renegotiation and subrogation
Those who have a loan, but realize that the monthly installments are not particularly convenient, can resort to subrogation, taking the loan to another bank that offers better interest rates and cheaper installments; alternatively, it is possible to try to renegotiate the debt without changing banks.
Through renegotiation and subrogation it is possible to request more advantageous conditions and consequently reduce part of one’s monthly outgoings.
3. Fixed expenses
Fixed expenses certainly cannot be crossed off the list of outgoings, but with some tricks their amount can be reduced.
For example, it is possible to reduce the cost of electricity by changing supplier, using smart devices, choosing LED lighting, installing solar panels and replacing household appliances with high energy class models. As far as shopping is concerned, however, you can pay more attention to offers, choosing discounted products, without having to give up quality.
4. The 24-hour strategy
If you are a shopping lover, in physical stores or online, a good way to reduce non-essential outings is to use the 24-hour strategy.
Very simple to apply, this strategy consists of waiting at least 24 hours before making an unnecessary purchase. If after this time you are still convinced that you want to buy a specific item and service, then you can proceed; otherwise you will have saved some money.
5. Savings instruments and products
In order to be able to reduce monthly expenses, it is sometimes sufficient to have savings tools or products available that allow you to set aside large or small sums of money, which are thus subtracted from the monthly budget you have available.
The most suitable solutions for this purpose include term deposit accounts, banking products, generally associated with a current account, which allow you to move sums of money and block them for a variable period of time.
Those who want to resort to an investment product can instead focus on PACs, i.e. Capital Accumulation Plans, which provide for monthly payments, generally constant, of an amount appropriate to one’s financial resources. In this second case it is essential, before signing a contract, to seek advice from expert financial advisors.
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