4 Tips from the Banking Association to Help You Achieve Your Savings Goals

The Banking Association has created four tips to help people who want to save to actually achieve their savings goals. Because the failure of savings goals is not uncommon: a spontaneous purchase decision or simply a short-term desire for pleasure with the subsequent spending of money torpedoes the savings success. With these tips, you can achieve your own goals – without a lot of money, but with a lot of discipline.

By Yvonne Doebler

After years of Zero and Penalty Interest for savers is finally back interest income. So investors can use their money risk-free returns achieve. For example, banks pay up Termingelder from new customers with an investment period of at least one year, over 3 percent interest.

The opposite is the inflation rate. It was included in March 2023 7.4 percent – with clearly falling trend. Anyone who invests money now minimizes their loss through currency depreciation. By 2024 at the latest, they are counting major German research institutes and also the federal government but again with one lower inflation rate. Then should again net income be possible with the investment.

Save in difficult times

Inflation, geopolitical uncertaintiesmultiple crises – no question: not in every one life situation is it possible to put money aside. “Then it makes sense to check out the running costs and see if and where savings are possible. From mobile phone contracts, electricity costs to account management fees, one should critical review running costs at least once a year,” writes the Banking Association. But when it comes to saving, it’s the same as with all good intentions: persevering is what’s hardest. And in the end nobody could avoid one truth: You can only save the money you don’t spend.

Saving tips that anyone can create

Inflation is still a big issue at the moment. who with one the Budget button have to get by, it is particularly difficult to save money for larger purchases, holidays or old age. In addition, there is often the demotivating thought that the money set aside will not be enough for the planned expenditure anyway. With the following tips from the banking association however, the savings project becomes a success.

1. Saving tip: The 52 week challenge
   Put one euro more in your savings box on the same day every week than in the previous week. Anyone who starts with one euro and follows this tip will have saved 1,378 euros at the turn of the year.
2. Saving tip: The five euro trick
   Your piggy bank loves five euro bills. Whenever you receive a five euro note, put it in your money box. Of course, this also works with one-euro coins or two-euro coins. The amount saved at the end of the year cannot be calculated in advance. But if you follow your own piggy bank feeding rule with discipline, you can hope for a decent amount at the end of the year.
3. Saving tip: The consumer diet in three variants
   Need and need are two different motivations for purchasing decisions. Black Friday is an example of the effect of sales and discount campaigns on the needs of consumers: They tempt people to buy things that they don’t actually need… but would like to have. The temptation to buy spontaneously torpedoes every savings plan. The Banking Association recommends a simple rule:
   Version 1: First write your wishes on a notepad. If after a month you still have an urge to buy the product listed, buy it. Otherwise save your money.
   Variant 2: Use what you have already bought: You can combine items of clothing in new ways or consistently use up consumables such as perfume, household products or care products before you buy new ones.
   Variant 3: The consumption diet also works in a team. Together with friends, define what you want to do without for six months or a year, for example.
4. Saving tip: round up in your favor
   Eat out, shop for a consumer good, get groceries – every time you treat yourself, you round up and save the difference. You define how much for each purchase yourself. If you shop for 63 euros, for example, you can round up to 65 euros, 70 euros or even 100 euros and set aside the rounded-up amount (in this example 2 euros, 7 euros or 37 euros) as a savings amount.

Inflation – what research institutes and the federal government are predicting

Invest the money you save well

If the piggy bank is full, or you prefer to take your saved money straight to the bank, a money market account is a good thing. Interest rates are rising again. Nevertheless, your money should actually bring more returns. That means: If your money market account is well stocked with emergency funds for the unforeseeable, you should invest the money you have saved in a more profitable way. Depending on how long you can be without the money for, you can earn more returns with low-cost ETFs (long-term investments) than with money market or savings accounts.