While you may already be privileged enough to feel like you have enough money each month, have healthy personal finance and live the lifestyle you want, you can save a lot of money by giving yourself a lump sum. That way you can make a good economy better.
Extra money bonus – Become more creditworthy
As an added bonus, you will be rewarded for your credit rating for better control of your personal finances. This will eg be a great benefit to you when you are faced with having to borrow money for a home purchase at some point, as you can show lenders that you are in control of your personal finances, pay everything in a timely manner and rarely go negative. This will lead to better loan terms from this source: Payday-Now.
Calculate your fixed expenses
Many Danes get money into the account every month and use the ones they need. For many, it makes sense to have a budget account to which you transfer a fixed amount at the beginning of each month, and then deduct all fixed expenses (eg rent, heating, electricity, loans, etc.) directly from that account.
Make an available amount
The money left over after you have paid into your budget account is your so-called “available amount” that you can spend on food, shopping, vacations, and other pleasures, without being worried that you cannot afford to pay the rent next month.
But there is a lot of money to be saved by giving yourself an available amount and following up on compliance. An amount of money is, therefore, the money you spend on household, clothing, holiday, pleasure, etc.
Many people may set a desired amount of money, but will never be followed up. And then the idea smokes a little. All you have to do is:
Create a budget account:
The following guide shows you step by step on how to achieve a budget account goal:
- Give you an overview of your fixed expenses
- Calculate a monthly lump sum that can cover all fixed expenses and add 5-10% to the buffer.
- Contact your bank advisor and ask to open a new account
- At the same time, ask your bank advisor to transfer your existing payment service agreements to your budget account.
- Make a permanent transfer from your payroll account to your budget account on the 1st of each month.
Setting aside an available amount does not mean that you will necessarily spend less money, but you must have control over what you spend and plan out unnecessary and unforeseen expenses.
Get an overview of your household
The household is clearly the place to save the most money. It is often here that you make the quickest and least thoughtful decisions – even though it is here that you spend most money most often. An ordinary Danish family spends 40-50% of their household money on disposal.
Therefore, it is especially important that it is your household that you get an overview of. Shop around once a week to avoid food wastage and junk shopping where you get something you don’t need. Also, go for deals and write a shopping slip away from home and stick to it.