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admin
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September 7, 2024
Saving money is hard when you want to have fun, too. We all want to buy nice things and go on adventures. But being wise with money means you can keep doing the stuff you like for a long, long time.
If you start saving when you’re young, your money grows like a tree. Small seeds turn into strong branches and lots of fruit. The same goes for pennies, which turn into dollars and, eventually, into a happy life.
Budgeting with Flexibility
Budgeting is making a plan where you say how you will use the money you earn by working. Making a reasonable budget helps you pay for all of the things you need and want. First, keep track of where you spend your money each month. Write it down or use an app like Mint. This helps you figure out your budget.
Your budget should save money for later and set aside money for things like food, clothes, and hobbies. Here are some ways you can budget:
- 10% goes to savings for emergencies or future trips
- 30% goes to important stuff like rent, gas, bills
- 20% goes to fun stuff like movies or games
When you start, you may not divide all your money exactly into 30%, 20%, etc., but this budget helps you plan and stick to it.
Budget Allocation for Maintaining Lifestyle
|
Category |
Percentage of Income |
Monthly Amount (Example: €2,500 income) |
|
Savings & Investments |
20% |
€500 |
|
Housing |
32% |
€800 |
|
Utilities |
6% |
€150 |
|
Groceries |
10% |
€250 |
|
Transportation |
8% |
€200 |
|
Entertainment & Dining |
10% |
€250 |
|
Miscellaneous |
14% |
€350 |
Building an Emergency Fund
An emergency fund is funds you save in case something unforeseen happens. You can use that money for situations like losing a job or needing car repairs. Having an emergency fund means you don’t use credit cards or get in money trouble when bad things happen.
First, figure out 3-6 months of normal rent, food, and gas costs. That’s how much you want to save. You can start small like €25 a month. Be consistent and add a little every month. Slowly your savings will grow.
Some good places to save your emergency money:
- Savings accounts earn a bit of money in interest
- Online banks often give you more interest
- Ask your parents to help you open one
Once you have an account, make saving automatic. You can have €10 from each paycheck or birthday money put directly into savings.
Types of Savings Accounts in Belgium
|
Account Type |
Features |
Interest Rate |
Best For |
|
Regular Savings Account |
Low minimum balance, easy access |
0.01% – 0.10% |
Emergency fund and short-term savings |
|
High-Yield Savings Account |
Higher interest rate, requires larger minimum balance |
0.10% – 1.00% |
Building a larger safety net |
|
Fixed-Term Deposit |
Fixed interest rate, locked-in period |
1.00% – 2.50% |
Long-term savings, higher returns |
|
Investment Account |
Invests in stocks/bonds, variable returns |
Varies |
Growth of savings over time |
Earning Extra Income
Making more money can help you save and spend. Here are some ideas: Do small jobs on weekends or nights. Walk dogs, babysit, mow lawns, or help neighbours. You can choose the jobs you like to do. Like:
- Sell things you make.
- Bake yummy cookies or knit scarves to sell. Turn hobbies into cash.
- Rent out things you own.
- Let someone pay to park in your driveway or store things in your basement.
- Open a lemonade stand or shovel snow.
- You can start small businesses doing things you’re good at.
Here’s another idea as you get older. You can take classes that help you get better jobs by enrolling in college, nursing school, or coding camps. You can get help with student loans in Belgium to help you pay if needed.
Student loans mean you borrow money for school and pay it back later. You only pay these loans once you finish school and have a career. So they are good for earning more money in the future.
Reducing Unnecessary Expenses
Trying to save money? Look closely at what you spend to see what you don’t really need.
You can go through your last few weeks of spending. So find things you buy out of habit, not because you need them. You can cut back on those as much as you can.
Make sure to call companies to lower your bills. You can ask for discounts on cell phone and internet bills to pay less every month.
Some ideas on what to cut back:
- Limit eating out to 2 times per month
- Wait 1 week before buying wants to see if you still want them
- Downgrade cable packages with channels you don’t watch
When you do spend, go for value. You can choose useful things that last over cheap stuff that breaks. You can pay less in the long run. If you need something big like a laptop for school, online loans in Belgium help cover costs:
- Online loans mean borrowing money you repay over time
- Let you get things you need even if you don’t have enough savings
- Just be sure onlyto borrow what you can realistically pay back
Conclusion
Keep finding little ways to save a few coins without giving up things that make you smile. You can cook dinner with friends instead of eating out. You can have a game night rather than seeing a movie. If you stay consistent now, when you’re older you’ll have a strong money tree to enjoy more big adventures. You can have security and exciting experiences too. Take care of needs and spend wisely on wants.
