Welcome to Amelie's Savings Tips!

Many people are struggling with their finances today. Rising mortgage rates, higher bills, and increased interest on loans and debts are making it harder to stay afloat, while savings interest rates continue to drop. On top of that, commercial websites and apps constantly tempt consumers with endless offers—flash sales, bulk discounts, Black Friday deals, and "too-good-to-miss" bargains—all designed to encourage spending. In a world where financial pressure is growing, resisting these temptations has become more challenging than ever.

This FInance Chapter offers some practical tips and strategies to help you avoid falling into a financial spiral and/or regain control of your money.

Amelie's at-a-glance Savings Tips List

  1. Avoid High-Interest Debt
    Steer clear of payday loans, consumer credit, and revolving debt like credit cards or overdraft facilities—they are expensive and risky.

  2. Track Your Finances with a Budget or Household Book
    Record all income and expenses to gain full visibility into your financial habits. Apps or spreadsheets can help automate this.

  3. Implement a Savings Plan
    For example, aim to save €200 in your 20s, €300 in your 30s, €400 in your 40s, and €500+ in your 50s per month toward retirement. Adjust upwards if you can.
  4. Watch Out for Small, Frequent Expenses
    Review your spending regularly to catch habits like daily coffee, subscriptions, or convenience purchases that add up over time.

  5. Schedule Fixed Costs After Payday
    Set up all recurring payments (rent, utilities, insurance) in the same week you get paid to see how much you truly have left each month.

  6. Review Contracts and Providers Annually
    Compare and renegotiate your insurance, phone, internet, and energy plans every year to ensure you're getting the best deal.

  7. Prioritize Paying Off High-Interest Debt
    Use the avalanche method: focus on the debt with the highest interest first while making minimum payments on others.

  8. Consolidate Debts Where Possible
    Consider a lower-interest loan to combine and pay off multiple debts. Ensure the new loan is actually cheaper and has no hidden fees.

  9. Build a Safety Net First
    Before aggressive saving or investing, set aside an emergency fund of at least 3 months’ worth of expenses—more if you have dependents.

  10. Know Your Numbers
    Be clear on what you earn, your fixed monthly expenses, and what’s left over for savings, food, and discretionary spending.

  11. Respect Financial Priorities
    Spend in this order: housing, utilities, debts, insurance, essential food, emergency savings, then non-essentials (entertainment, wants).

  12. Avoid Unaffordable Consumption
    Never spend on luxury or lifestyle upgrades if you can’t cover your basic fixed costs and debt obligations.

  13. Use the 30-Day Rule for Non-Essential Purchases
    If you want something, write it down and wait 30 days. Often, the urge fades and you save money.

  14. Buy Smart
    Shop with a list, avoid impulse buys, and purchase non-perishables in bulk when on sale.

  15. Don’t Waste Financial Windfalls
    Bonuses, gifts, or tax returns should be used to either pay down debt or boost emergency or retirement savings—not for spending sprees.

  16. Debt First, Then Savings (With One Exception)
    Prioritize paying off debt before saving—except when building an emergency fund, which should come first.

  17. Plan for the Cost of Children
    Raising a child can cost €100,000–€200,000 (or $150,000–$450,000 USD/CAD/AUD) by age 18, excluding college. Plan carefully and early if you want a family.

  18. Use the 50/30/20 Budget Rule (Modified)
    Aim for: 50% on needs (housing, food, utilities), 30% retirement and future savings, 10% emergency savings, 10% for fun.

  19. Choose Practicality Over Prestige
    Buy what serves your needs, not your ego. A small, reliable new car is usually better than a flashy old one with high maintenance costs.

  20. Debt is Temporary—If You’re Disciplined
    Being in debt is tough, but it’s not forever. The more aggressively and consistently you tackle it, the faster your life improves.

  21. Increase Income if Possible
    Don’t just focus on saving—look for opportunities to earn more (e.g., side gigs, upskilling, negotiating raises).