Saving for the future makes it possible to fulfil your dreams and cope in difficult times.
To save more than you have been:
get your bank statement for the last 12 months from the Internet Bank;
draw up a detailed table of your income and expenses; and
find answers to these four questions in the table.
1. Were all the expenses necessary?
Look at your electricity and water use and the money you spent on food, clothing and of course services. Do you really need that package with the fastest Internet and the most TV channels? Also, eating out a lot and buying takeaway coffee and snacks adds up.
Look at your transport costs. Buses and trams are cheaper than cars and taxis. A bike is the best option health-wise.
Bad habits are also expensive. For example, if you smoke two packs of cigarettes a day, that can add up to 3000 euros a year. For that amount you could buy a new bike or go on holiday with your family. You could even transfer an additional 100 euros a month to a target deposit.
2. How many impulse purchases have you made?
Before making a bigger purchase, find out whether you can get the same item for less from another seller. Look beyond the border as well – it’s often cheaper, even with shipping costs, to order goods from abroad than it is to buy them from Estonia.
3. How much interest have you paid?
Instead of using a small loan, a credit card and hire purchase, use a target deposit if you can: for bigger purchases put aside a small amount every month. That way you can earn interest instead of paying it.
4. Is cheap actually cheap?
When making a bigger purchase, think of the maintenance costs involved. For example, the energy consumption of household appliances in different price ranges varies a lot, as do the fuel and maintenance costs of cars and the insurance premiums you pay.