The true power of saving: consume less, live more 😉
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Introduction: Why is it important to save a portion of your salary each month?
When you receive your salary, you generally have two options: spend all your money or save some for later.
The first option allows you to benefit from your income immediately. The second allows you to gradually build financial security.
But saving isn't just about having more money in your bank account.
Saving also means learning to consume less, to own less, to simplify your daily life and, gradually, to gain freedom.
1 in 5 people in difficult financial situation
According to the post avenir-suisse1, 1 in 5 people in Switzerland have no savings greater than CHF 2,500.
I think not saving is dangerous and demotivating! We will analyze why in this article 🧐
Saving starts with a simple question
Before trying to earn more, ask yourself this question:
Do I really need to spend all the money I earn?
Let's take an example.
You earn 4,200 CHF net per month and you spend 4,100 CHF. You only have 100 CHF left.
Conversely, if you spend 3,400 CHF and save 800 CHF, your salary is exactly the same.
The difference comes from your lifestyle.
7 reasons to save
Here are the seven main advantages of financial minimalism:
1. Savings protect you against unforeseen events.
The first reason to save is very simple: Unexpected things happen.
- A car breaks down.
- A computer needs to be replaced.
- An unexpected bill arrives.
- A household appliance stops working.
- A medical or veterinary expense is incurred.
If you have no savings, you may have to use a credit card, borrow money, or ask someone for help.
With a financial reserve, the situation is different.
An unexpected bill of 1,000 CHF is still unpleasant, but it does not necessarily become a financial disaster.
Saving transforms certain financial problems into simple unexpected expenses. And it saves you the hassle of borrowing from your bank or family.
2. Saving forces you to think about your consumption
Saving regularly also requires looking at where your money goes. And that's often where the surprises begin.
You might discover that you spend, for example, each month:
- 80 CHF in subscriptions that you rarely use
- 100 CHF in impulse purchases
- 50 CHF in avoidable ordered meals
- 30 CHF in small daily expenses
- 40 CHF for services you've forgotten existed
None of these expenses seem enormous individually.
But added together, they can represent several hundred francs lost each month.
Frugality is precisely about identifying those expenses that don't bring you enough value.
3. Consuming less also means less clutter in your home
Saving also has an unexpected consequence: It can reduce the amount of material goods you buy.
Imagine that you regularly buy clothes, gadgets, decorations, electronic devices or objects« because they are on sale ».
After a few years, your apartment fills up.
And all these objects then ask: space, storage, cleaning and maintenance.
An item costing 30 CHF didn't necessarily cost you only 30 CHF. It can also cost you time.
Conversely, when you think more before buying, your housing can gradually become simpler.
- Fewer items = less storage.
- Less storage = less cleaning.
- And Less consumption = less spending.
This is where minimalism and frugality meet.
4. Your salary also represents your time
Here's an interesting way to think about your spending.
Let's say you earn 25 CHF net per hour.
You buy an item for 250 CHF.
In truth, you have dedicated approximately 10 hours of work in order to be able to purchase this item.
This reflection can change the way you consume.
Before buying something, you can ask yourself:
Is this purchase really worth several hours of my life?
For an item that you will use for years, the answer can be yes.
For a gadget used two or three times, definitely not!
5. Savings can gradually become an investment
Once you have built up your emergency savings, part of your money can potentially be invested according to your objectives, your time horizon and your risk tolerance.
The idea is simple: not just keep your money, but seek to make part of your assets work for you over the long term.
For example, if you manage to save 500 CHF each month, that represents:
- 6,000 CHF per year
- 30,000 CHF in 5 years (not including any potential returns)
- 60,000 CHF in 10 years, (still without taking into account returns).
These amounts can then be used to finance a project, supplement your retirement savings, or gradually build your wealth.
However, be aware: Investing involves risks and returns are never guaranteed.
6. Your savings rate can become a measure of freedom
This is probably the aspect I find most interesting.
Let's imagine two people who each earn 5,000 CHF net per month
- The first expense was CHF 4,950.
- The second person spends CHF 3,500 and saves CHF 1,500.
The first woman needs her salary to maintain her lifestyle.
The second one has a much larger financial margin.
Therefore, if the second woman loses her job, wants to change careers, take a few months off or finance a project, she has more options.
Saving doesn't necessarily guarantee financial freedom, but it increases your room for maneuver.
7. What percentage should be saved?
There is no magic percentage.
Some people can save 10 of their income. Others 20, 30, 50 or more.
If you're not currently saving anything, start by 10 % is already an excellent step.
You can then gradually increase your savings rate.
A simple method is to automate the transfer of savings immediately after the salary payment.
For example :
Salary: CHF 4,000
→ 400 CHF towards savings
→ 3,600 CHF available for living expenses
This way, you avoid waiting until the end of the month to see what's left.
Saving money doesn't mean depriving yourself.
Having read this far, you might think my message is to save money to an extreme degree. That's not true!
Being frugal doesn't mean living in deprivation. It means rather spend consciously.
You can absolutely save money while travelling occasionally, going to restaurants on occasion, playing sports, or frequently enjoying your hobbies.
My main message is this:
Analyze and eliminate unnecessary expenses. It's better to save than to spend on frivolous things.
Conclusion: less consumption, more possibilities
Saving a portion of your salary each month is not just about accumulating money.
This can bring you:
- a reserve for unforeseen circumstances
- less financial stress
- fewer unnecessary purchases
- a less cluttered home
- Less paperwork
- more heritage
- more possibilities in your professional and personal choices
Ultimately, the goal of frugality is not to own less for the sake of owning less.
It's about removing what brings you little value in order to preserve more resources for what really matters.
Every franc you don't spend unnecessarily today can become an additional opportunity tomorrow.
And sometimes, true wealth is not about being able to buy more.
It's simply about no longer having to buy things to be happy.
The true power of saving: consume less, live more
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How does this blog live?
Overall, this blog lives on sharing a frugal and minimalist lifestyle.
For a question of transparency towards the readers. All recommended products are in order to make life cheaper, simpler and to promote the essentials.
Basically, my only income with this blog comes:
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About me
I decided to create this blog to develop and help readers who are looking for a simpler and more economical life.
Compared to before, I was a person who consumed a lot until the day I realized that my consumption made me sadder and poorer 😑
Now I prefer the minimum of my needs to be happy and achieve my financial freedom.
Without realizingI started to focus on saving and investing to depend on a boss for as little time as possible and to speed up my personal projects.
For several years I have felt happy and enriched myself in a way that I would never have imagined given that I have an average salary in Switzerland.😊
What is the purpose of this blog?
I decided to create this blog to share and learn with other people who are looking for freedom and simplicity 😉
Are you rather minimalist or frugal Jonny?
I am as minimalist as I am frugalist. However, there are situations where I lean more towards an art of life.
To conclude, I think the most important thing is to feel comfortable in your lifestyle 😊
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