In my experience, many people have expensive regular expenses 📉. Here are the top 5 expenses that drain your finances and my solutions 😊.

1 - Housing 🏠

We need a”at home”"to find accommodation.

👉 On the other hand, in my opinion. Depending on the region of residence, a dwelling should not not exceed 20% of its monthly income 🔍

In reality, spending a high amount on housing automatically means less budget for other important expenses. For example:

• Expenses related to his family
• Leisure activities
• Financial contingencies
• Investments that can provide financial freedom

➡️ After all, we must not forget that despite its usefulness, housing is only material.

👉Here are some ideas for saving money. This helps reduce housing-related expenses and stay within the 20% housing budget limit.

• Have a roommate or spouse (to split rent and bills).
• Living in the countryside (generally, rents are cheaper).
• Living in a small home
  • (If you are a homeowner, the smaller the accommodation, the less maintenance you have to pay).
  • (If you are a tenant, the smaller the apartment, the cheaper the rent overall).

Don't forget that every CHF saved in your housing automatically increases your purchasing power!

2 – Holidays & Impulse Buying 🌅

Holidays are important for our mental and physical well-being.

👉 On the other hand, I think the holiday budget should not exceed 5% of its monthly income 🔍

Why spend a 13th month's salary on a short week's vacation? Vacations should be a time for relaxation, not a source of excessive spending!

👉 I think the holiday budget should be reasonable in relation to what one earns ❕

Impulse buying is also a frequent expense.

According to a survey by alixparteners, the average Swiss person spends between 2,000 and 3,000 CHF impulsively per year.

This non-essential consumption often includes clothing, gadgets, or decorations.

Thus, reducing impulsive purchases can save between 20,000 and 30,000 CHF over 10 years.

3 – Consumer debt 📉

Consumer debt represents a very heavy expense for the budget.

⚠️ In reality, Every loan you make is a step back towards financial freedom ❗❕

There may be some exceptions, such as a mortgage loan.

👉 But in most cases, debt will make you lose more money than you will earn 😑.

➡️ Therefore, avoid debts consumption and if you have one. Pay as soon as possible to avoid negative compound interest 🔍

4 – Vehicles 🚗🏍

We all need a means of transportation. From a financial point of view, walking is ideal 🚶‍♂️

I'm going to write an article on this topic in order to save money! But in broad outline, here are in order, which means of transport should be favored to increase the savings rate.

1. Walking 🚶‍♂️
2. Bicycle or scooter 🚲
3. Scooter 🛵
4. Public transport 🚇🚍
5. The car or motorcycle 🚗🏍

However, depending on where you live and your lifestyle, sometimes it is better to have a vehicle. Because it is the only valid option.

➡️ If this is your case, it is better to choose a reliable and economical car.

We shouldn't assume that only the poor use public transport or cheap cars.

One example is the former owner of Ikea, Ingvar Kamprad, who had a fortune of $35 billion. He used the bus or an old Volvo to get around.

In my opinion, the transport budget should not not be higher than 7% of monthly income 🔍

5 – Subscriptions, insurance, and excessive outings 📋

👉 To conclude this top 5 list of expenses that drain your wealth, subscriptions, insurance, and excessive spending deserve special attention!

We tend to accumulate these expenses without realizing it:

• a subscription added and forgotten a few months later
• insurance paid twice
• an outing that has become a routine instead of a pleasure

It is possible to lose hundreds of CHF per month on unused subscriptions, expensive insurance or unnecessary outings.

This represents thousands of CHF spent each year without needing it.

Conclusion

Here is a table with examples written in this article.

The goal is to quickly understand how much a person can save by avoiding the top 5 impoverishing expenses. 😉.

Expense	Before % salary	After % salary
housing	25%	20%
Vacation	10%	5%
Impulse purchases	5%	1%
Consumer debts	4%	0%
Transport	12%	7%
Insurances	8%	5%
Subscriptions	4%	1%
exits	15%	10%
Percentage of income	83%	49%

➡️ In my example, it is possible to save approximately 35% of the monthly budget 🔍

note that If you save more, you will be less dependent on money from a client or a boss.

🔍 Tip 🔺 Use Excel to track your budget. Do a monthly analysis to better manage your finances.

Remember, the more you save, the better you will manage your budget and the closer you will get to your financial freedom. 😉

Bonus – Avoid any unnecessary expenses 💰

Besides the top 5 expenses that drain your budget, there are also minor, but avoidable, expenses that impact it. For example :

• Bank account with very high bank fees

In this case, it is better to have a bank account without fees.

• Inflation increasing every year

Indeed, in order to control your budget, you must plan for future increases in the cost of living.

In this blog, I will provide more information on these expenses to avoid.

Top 5 expenses that impoverish

FAQ: Top 5 expenses that make you poorer – How to save money in Switzerland?

Question	Answer
What are the 5 expenses that contribute most to poverty in Switzerland?	Here are the 5 most expensive expenses which reduce your savings and financial freedom: 1. The accommodation (often >20% of income). 2. Holidays and impulsive purchases (up to 10% of income + 2,000–3,000 CHF/year in spontaneous purchases). 3. Consumer debts (loans for cars, household appliances, etc.). 4. The vehicles (car, motorcycle, petrol, maintenance). 5. Subscriptions, insurance, and excessive outings (hundreds of CHF/month in unnecessary expenses). → Solution Reducing these positions can help you save up to 35% of your monthly budget.
Why is housing the number one expense that leads to poverty in Switzerland?	In Switzerland, the accommodation (rent or mortgage) can exceeding 20–30% of revenues for many households. However, Every CHF saved on housing increases your purchasing power For : – Leisure activities. – Unforeseen events. – Investments (ETFs, real estate). Tips to reduce this expense : – Shared accommodation or living as a couple to split the costs. – Moving to the countryside (rents 20–40% cheaper). – Choosing a small apartment (cheaper to buy/rent and maintain). → Objective Limit housing to ≤20% of your income.
How much should you spend on a holiday in Switzerland? What's a reasonable budget?	My advice The holiday budget should not do not exceed 5% of your monthly income. Example If you win 5,000 CHF/month, limit yourself to 250 CHF/month (either 3,000 CHF/year). For what ? : – A week's vacation shouldn't cost a 13th salary. - THE Impulse purchases (clothing, gadgets, decoration) can also cost 2,000–3,000 CHF/year (either 20,000–30,000 CHF in 10 years !). Trick : Favor the low-cost travel, peer-to-peer rentals (Airbnb), or the stays in Switzerland (lower transport costs).
How much does a Swiss person spend on impulse purchases per year?	According to a AlixPartners survey, A Swiss person spends on average 2,000 to 3,000 CHF per year in impulse purchases (clothing, gadgets, decoration, etc.). Impact over 10 years : 20,000–30,000 CHF lost! How can this be avoided? : – 48-hour rule Wait 48 hours before making any non-essential purchases. – Shopping list Never go shopping without a list. – Unsubscribe from newsletters (fewer temptations = less spending).
Why are consumer debts dangerous for financial freedom?	Every loan = a step backwards towards financial freedom ⚠️ Consumer debt problems : – Negative compound interest You pay more than the initial price (e.g., a loan for a CHF 20,000 car can cost 25,000–30,000 CHF (with interest). – Dependence The more debt you have, the more you depend on your salary. Exceptions : A mortgage may be acceptable (if the monthly payments remain reasonable). Solution : Avoid debt And, if you have any, reimburse them as soon as possible.
What transport budget should one plan for in Switzerland?	My advice The transport budget should not do not exceed 7% of your monthly income. Ranking of means of transport (from cheapest to most expensive) : 1. Walking 🚶‍♂️ (0 CHF). 2. Bicycle or scooter 🚲 (~20–50 CHF/month). 3. Scooter 🛵 (~100–200 CHF/month). 4. Public transport 🚇🚍 (~50–300 CHF/month with subscription). 5. Car or motorcycle 🚗🏍 (~300–800 CHF/month). Example If you win 5,000 CHF/month, limit yourself to 350 CHF/month for transport. Trick Even the rich save money! Ingvar Kamprad (founder of IKEA, $35 billion) lent the bus or drove in old Volvo.
How to reduce excessive subscriptions, insurance, and outings?	These expenses accumulate without us realizing it : – Forgotten subscriptions (Netflix, gym, magazines). – Duplicate insurance policies (e.g., travel insurance included with your credit card). – Outings have become a routine (restaurants, bars). Solutions : 1. Conduct an audit List all your subscriptions and insurance policies, and Cancel the ones you don't use.. 2. Negotiate your insurance policies Compare the offers (e.g.: Comparis.ch). 3. Limits outings One outing per month instead of four = savings of 200–500 CHF/month. → Result You can save hundreds of CHF per month.
How to save 35% from your monthly budget in Switzerland?	By following my advice and having a decent salary, you can reduce your expenses by 35% :

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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 I have become richer in a way that I would never have imagined given that I have an average salary in Switzerland.

It is for this purpose that I decided to create this blog. In order to share and learn with other people who seek 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 😊