Save money: cut back and invest

For many people, saving money is like tightening your belt. However, this does not have to be true, which does not mean that there is no effort involved. The goal of saving money is often to get your finances in order for the future. However, by making investments in addition to saving, the goal is achieved much better than just saving.

Save money

tools available to save money . However, often the result of these tips is that life ends up being very Spartan, bypassing “life” itself. Some of these tips, which seem bizarre to me, include using a white block of alum instead of deodorant or sharing Christmas card envelopes with other family members. These tips hardly yield anything and do not really make life pleasant. Another solution to get your financial situation in order is to make a good combination of saving and investing. Saving because the logical consequence is that more money becomes available, investing because by investing in, for example, a study, income can be greatly increased. This combination yields much more than cutting back on deodorant and envelopes.


For many, cutting back consists of the simple things, such as being frugal when shopping and the like. These matters are very important, but they must also be looked at at another level. Things where the most money flows are often mortgages, loans, transport and energy. Most of the money can also be saved on these things. It is often worthwhile to convert a mortgage , especially if the fixed interest period has already been extended with the same mortgage provider. The interest rate is often higher than is usual in the rest of the market. A conversation with a mortgage advisor can clarify whether the mortgage could be cheaper. Another problem is loans , outstanding loans cost a lot of money and are often fixed for a long time. The only option to cut back on loans is to stop taking out any more and use whatever money is left as much as possible to pay off the loan, which will at least save some on interest. Significant savings can also often be made on transport . The costs of cars per month vary greatly. It may be worthwhile to trade in the car for a cheaper, smaller (lighter) and more economical variant. Pay attention to how many kilometers are driven, it can quickly pay for itself to opt for a car on LPG G3: Road tax and consumption are hardly higher and the fuel price is many times lower. Energy can also be saved, use night power (a lower rate) as much as possible for laundry, for example, and compare your own provider with others on the internet . Switching electricity suppliers can also save money. In addition, when purchasing new electrical appliances, look carefully at the energy consumption; a slightly higher purchase price of the appliance is quickly offset by lower energy consumption. By saving on the few things mentioned, enough money can often be saved to be able to put a portion aside. However, it is important that that money is used as an investment on the income side, so that the financial situation improves in the future.

To invest

Cutting back does ensure that there is more money left over at the end of the month, but does not ensure that more money comes in at the beginning of the month. By investing on this side , you can achieve the most profit. The best way to increase monthly income is to increase your own value in the labor market. Studying alongside the job can be a good first step. There are various options to study alongside a job, and plenty of organizations offer MBO or HBO home studies. However, sometimes this still includes mandatory attendance days, so please discuss this with your own work first. Often this will not be a problem. There is also a provider at a higher level, university home studies can be followed at the Open University. Although such a study obviously costs money, the same study also ensures that you can look for a better-paying job. If it is not affordable to follow the study from your own funds, a loan can be taken out for this. Although studying in combination with cutting back makes for a temporarily difficult situation, it ultimately provides much more convenience. After studying, in combination with the work experience already gained, you can look for better-paying work. This does not have to be with a different company, it is often possible to stay with the same company but fulfill a different position. Of course, there are more options for investing, you can also invest in a small internet company or something similar. The essence is that simply saving money in the household causes unnecessary inconvenience that also yields very little. It is best to immediately think about investing when making cuts, as this can permanently improve your financial situation . Following a course of study is the most realistic and feasible option. Home studies in particular can often be followed at your own pace, while there is sufficient support from the institution itself.