Expense Control: The Best Tips for Spending Less Without Suffering

The word savings puts most people off. We live in a society bombarded by short-term consumerism that makes it hard to see beyond the next purchase. It's like a hamster wheel that never stops: you work, pay debts and bills, save the bare minimum, and repeat — every month the same.

As mentioned in other episodes, there are two ways to grow your net worth: increase your income or reduce your expenses. Reducing expenses alone won't make you rich — I won't lie to you — but what I can assure you is that with good expense control, you'll live much better without worrying about an unexpected bill forcing you to ask your employer for a salary advance.

Remember: it's not how much you earn, it's how you manage what you earn.

First Step: Measure the Problem

To solve any problem, you first need to measure it. At the end of each month, you need to know exactly how much you've earned and where every cent has gone — not just the difference between income and what's left, but the breakdown by category.

Tools to Help

• Manual spreadsheet: tedious but it works.
• Your bank's app: most banks now offer spending charts and tables, but they often fail at proper categorisation and data export.
• Dedicated app: for me, the best option. Popular ones: Fintonic, MoneyControl, Monefy.

To build the habit of logging expenses, I stuck a post-it inside my wallet. Every time I pulled out my card, I'd see it and remember to log the purchase. A ridiculously simple trick — but it works.

The Best Tip: Pay Yourself First

This is the most important piece of advice I can give you. Don't wait until the end of the month to see what's left — there will always be an excuse to spend it. Instead, the moment your salary arrives, set up an automatic transfer to a separate savings account without a linked debit card.

How much? It depends on your income and expenses, but start with 10% of your salary. The exact amount matters less than the mindset: you come first, everything else second.

Piggy Banks for Fixed Expenses

Beyond your general savings account, I recommend creating separate accounts for predictable, recurring costs:

• Car insurance
• Home insurance
• Summer holiday

If you know you'll need to pay €150 for car insurance in May, divide that by 12 months: €12.50 per month transferred automatically. When the bill arrives, it's already covered. Our brains don't process €12.50 per month the same as a sudden €150 — even though it's exactly the same money.

Special Note for the Self-Employed

If you run a business or work as a freelancer and need to pay VAT, income tax, or corporation tax, this advice becomes even more critical. Create dedicated accounts for each tax, and on every payment received, automatically transfer the corresponding percentage. When the quarterly deadline arrives, the money is there. If you don't do this, money that felt like yours turns out not to be — and that's when the headaches start.

Quick Tips for Everyday Spending

• Check the price per unit or per kg, not just the total price on the shelf. Most people only look at the final price and end up overpaying.
• Buy quality. It costs more upfront but lasts longer and saves money in the long run. Jeans for €20 that last 6 months cost you €200 over 5 years; jeans for €100 that last 5 years cost half as much.
• Be careful with debt. Personally, I'd only take on debt if I knew someone else would be paying it back (for example, a mortgage on a rental property). We'll cover good debt vs. bad debt in another episode.
• Monthly subscriptions add up. You don't need Netflix and HBO at the same time if you can't watch everything — rotate them.
• Check prices before Black Friday using price-tracking apps. Many "deals" aren't as good as they look.
• Before buying impulsively, ask yourself: will I even remember I own this in two months? If the answer is no, don't buy it.

The Golden Rule

Your expenses must always be below your income. Obvious as it sounds, many people spend more than they earn — showing off luxury cars while taking out loans to cover groceries.

Don't put on a show. Buy for yourself, not for others. Don't get swept up in consumerism.

As the saying goes: Don't spend to look rich. Save and invest to be rich.