The median salary in Spain is around 1,800 euros, this means that half of the workers earn more than that figure, while the other earns less. But there’s still almost 8 million people who earn less than 12,000 euros gross per year Inflation, which has triggered the price of food, the rise in gasoline or the increase in mortgage prices do not make it easier the task of saving as a mileurista. To achieve this, it is necessary to forget about unnecessary expenses, limit the necessary ones and follow one of the saving methods best known.
The first thing we must do is calculate all our fixed expenses to know the amount we have left to spend on going out with friends, going on a trip, buying clothes and, of course, saving. This applies both to a person who lives alone and to couples.
Mortgage and rent They are usually the main expense. It is estimated that 23.5% of income is dedicated to paying rent. Meanwhile, with the rise in Euribor, there are already families devoting 33.6% of their salaries to paying an average mortgage, according to calculations by CaixaBank Research based on data from the Bank of Spain. So the first thing to do to be able to save with a salary of 1,200 euros is to adapt and choose a city or neighborhood where the economic effort is less. There are also rental aids of 525 euros per year for pensioners.
The second largest consumption is usually covered by food. In March it rose again by almost 3% and the basic basket stands at around 250 euros per month for one person and between 300 and 500 euros for a couple. It is recommended to spend between 5% and 15% of the monthly salary on food, so you have to compare prices, ‘throw away’ private labels, register as partners in supermarkets to obtain discounts or look for cheap stores. It is also a great saving to avoid buying ready-made food or ordering it at home. Unfortunately, the data shows that we are buying less and less meat, fish, fruit and vegetables.
Then, other necessary expenses, such as electricity, gas, water or telephone mobile. The first thing to do is review each of the rates and ask about possible offers from other companies. Very important, hire the Last Resort Fee (TUR) of gas and check if we are entitled to the social subscription for electricity, the social telephone subscription. The difference between all the services can exceed 100 euros per month and up to more than 200 in the winter months. Also, home insurance.
The rest of the expenses will depend more on each person and their lifestyle. For example, move in public transportation, if possible, it is cheaper than doing it by car and spending gasoline and insurance. It is also an option to reduce expenses share streaming platform accounts as long as they allow it. and about the clothes, if we want to save with a floor of 1,200 euros, it is necessary to ‘take out the scissors’ and cut back. Buy in cheaper stores and look for ‘outlets‘ are two options.
Useful saving methods
But in addition to taking accounts on our own to ‘scratch’ among the most common expenses already mentioned, there are different methods used throughout the world and that have many followers.
- 52 week challenge (one year): every Monday we save one euro and we will add another one every day of the week. So in succession, that is, when Sunday arrives we will have to add 7 euros. This is how you get 1,456 euros per year.
- The 50 cent trick: it starts with half a euro and, for a year, they increase by 50 cents each week. In the last one, 26 euros will be paid and the total savings will be 689 euros per year.
- The 80/20: Mike Winters indicates that scheduling monthly operations to transfer money between two accounts is a good idea. Fixed expenses plus whims should never exceed 80%, because on the first day of the month, the other 20% will go to a savings account. Earning 1,200 euros a month, we should save 240 euros and spend only 960.
- 72 hour rule. It is the one that can help the most to reduce unnecessary expenses. Because the key, according to the Austrian neurologist and psychiatrist Viktor Frankl, is to allow 3 days to pass from when we have chosen an item until we buy it. This way it will be more difficult for us to make a mistake in the choice.