The eternal dilemma of every saver passes broadly for these terms: how to live happily with the current salary? Let’s face it better: how to make ends meet with the income we have without torturing our existence?
Well, no one imagines that 3 accounts are enough to live forever without stress as well as saving thousands of euros.
The three accounts that will make us richer
Our intent will be to demonstrate how to be able to pay fixed and variable expenses and, in addition, guarantee us a fixed amount of monthly savings.
Obviously the reference is to the average worker who aims to square the circle with his income. In the article referred to here in the link we have already shown how to live without stress with 1,500 euros per month.
In fact, we are not going to invent anything new here. However, we will demonstrate how to make the most of three products that have already been on the market for some time and that are right for us.
These are two current accounts, of which at least one of the two should be free of charge, and a deposit account.
The underlying philosophy behind such a scaffolding
In practice, we must assign a specific and precise function to each of the three tools.
We have to assign two particular functions to the main account. First of all, the crediting of the salary and of all the other forms of income that we collect, whether regular or not.
Secondly, on the same we must domicile all domestic utilities such as mortgage or rent payments. Or the installments of the car purchase, various fixed subscriptions such as Internet, mobile phone, gym, means of transport, etc.
In practice, we must have a single interlocutor account with which to guarantee full coverage of fixed expenses. Better: of all those items of expenditure of which we are sure already at the beginning of the month that we will have to pay them within the term of that same month. In this way we are sure that we will never disconnect the electricity or we will not receive various protests or evictions etc.
It’s unbelievable but no one imagines that 3 accounts are enough to live forever stress-free as well as saving thousands of euros
At this point the second current account comes into play, possibly at zero costs (and hopefully the previous one too).
On this 2nd c / c we are going to combine a credit card with which we will support our variable expenses for the month. Obviously at the beginning of the month we will transfer a slice of our earnings to this tool and with which we will go to take away the “whims” of the month.
But how much of our revenues? Precisely a share included between all that remains after paying all fixed costs and the fixed share that we allocate monthly to savings.
In practice, the second account must act as a “free perimeter” within which we can spend on impulse expenses of the month. A jeans, a dinner out, a spa day, etc., will be our costs that we will pay only with the monthly budget of the 2nd c / c.
The deposit account: no one imagines that 3 accounts are enough to live forever without stress as well as saving thousands of euros
At this point we are missing the last piece to complete the work. It refers directly to the deposit account (CD), which, as the term itself says, will serve us for two essential functions.
The first will be to accommodate the slice of revenue that we will allocate monthly to savings. For example, it could be 5% or 10 or 20% of our monthly income. Everything will depend on the size of the latter and on our propensity to save. This will be our piggy bank for future needs and contingencies.
His second mission will be to make them yield and bear fruit over time.
At the moment, in fact, in the short term they are the only instrument that gives interesting returns. In the article referred to here in the link we illustrate for example in which circumstances it is possible to earn up to 3% with the CD.
Nothing to complain: no one imagines that 3 accounts are enough to live forever without stress as well as saving thousands of euros.