Five tips: What’s the easiest way to save?

Where is the best place to tighten your belt? What should you pay attention to? Andreas Reinhart, 49, media spokesperson for Caritas Zurich, has put together five tips on how to keep your finances under control.

1. Create an overview

“Make a budget, make a budget, make a budget. The budget is so important that it should come first, second and third place,” says Reinhart. Philipp Frei (38), Managing Director of the Budgetberatung Schweiz umbrella organization, also emphasizes how important it is to know your expenses. However, Max Klemenz (58), co-director of the Zurich cantonal debt advisory, adds: “Budget planning is a very individual thing. For some, a fitness subscription is essential, for others Vitaparcours is enough.» When it comes to savings, it’s important to ask yourself: Where does it flow? Where is it really useful?

2. Reserve more for additional costs

“The electricity bill will be more expensive,” Frei says. Many are not yet fully aware of this. Hence: “Such things should be scheduled on time, especially when you have a tight budget.” The umbrella organization for budget advice in Switzerland is in the process of communicating and drawing attention to the current price increase. “These are expenses I cannot influence.”

3. Not using a credit card

Andreas Reinhart recommends using a prepaid credit card to keep track of costs.

4. Consider large purchases carefully

“Sleep on it once or twice before making any major purchases,” says Reinhart.

5. Use second hand offers

You may also consider whether it is worth buying second hand. According to a Caritas media spokesperson, you can buy, trade or share secondhand.

Philipp Frei emphasizes once again how important it is to know your expenses. It helps to create an overview of monthly costs like cell phone subscription as well as annual costs like taxes. Then it is necessary to create a reserve. “A higher doctor’s bill, a car bill, health insurance, and taxes are skyrocketing.”

It is also important to distinguish between fixed costs (rent, vehicle, transportation, health insurance) and flexible costs (food, leisure). «With flexible costs, I can make changes quickly. “Anyone who buys their coffee for the commute every day, takes their croissants home from the bakery, and grabs an afternoon snack can earn a few hundred francs a month.” Here you have to make an informed decision about what you spend your money on. “Planning brings a lot here, even on a tighter budget.”

Debt comes with shame

A two-account model can also help. Free funds are available while you accumulate your rewards in one account. “Only one current account encourages you to spend more.”

Debt is still a taboo subject, Frei explains. “They often make you feel like you’ve failed.” There are situations where a negative level does not occur spontaneously, such as the current price increase. The managing director of the umbrella organization Budgetberatung Schweiz emphasizes: “It makes sense to seek help at an early stage. Now is the time to deal with it. Not until it’s too late.”

Support is here:

Umbrella Organization Budget Recommendations SSwitzerland:
www.budgetberatung.ch

Debt advice Zurich canton:
www.debt-zh.ch

Caritas debt advice:
www.caritas-kreditenberatung.ch