How to save money in Spain

Could now be the ideal time to make the most of the low Pound Sterling if you live in Spain? Most British ex-pats in Spain think that they are receiving a rough deal at the moment. It is true - they are.  British pensioners and others living in Spain have seen their overseas income fall. At the end of the month, you end up with less money in your hand and that is not a welcome solution for anybody. There are ways around the problem, and you may even want to get in touch with one of the currency transfers experts to see if they can help you. But is there a way of making your income stretch further in Spain?

Spanish supermarkets are now more expensive to British ex-pats, but is there some other ways that you can save money on your weekly shopping? The Saturday just gone, I decided to pop into my local Iceland supermarket. The supermarket buy most of their goods in Pound Sterling, and I reasoned the lower Sterling must have made a lot of their produce cheaper. I was pleasantly surprised to find that I was able to pick up about a week's basic grocery shopping for about €30 in Iceland, and that even included some delicious Rich tea biscuit and early mince pies. Last year the same box of mince pies retailed for about €3.50 but this Saturday they were only €2.00. Nothing like a little treat.

What else can you save money on at the moment? If you need to do some clothes shopping, it might be a good idea to check out some of the online clothing retailers. Most of them have offers available, and if you use your hard earned Euros to pay for them, you can bag a few bargains. I got some good deals on the Debenhams website and even on Marks and Spencer. Check out retailers carefully, and make sure that they offer free delivery to Spain.

What about supplements and vitamins? The leading online health food companies now offer free delivery to Spain. Start checking out prices online, and you will soon find that you will be able to pick up some fantastic deals without even getting out of your armchair. Most deliver services are good, and your order can be with you in a matter of days.

If you have some money to spare, you may even want to consider taking up a few UK investments. Property in the UK in some parts is still very good value for money, and then you always have the stock market. How about buying a few shares while the Pound is low? As always make sure that you are careful with the cost of currency transfers. Check out some of the local currency transfer specialist in Spain, and make sure that you get a good rate. Get a quote before you agree to anything. 

Not all is doom and gloom. It is all too easy to think that the low Pound is bad news, but how about making the most of it instead...you may even want to book your next cruise via the UK and save a small fortune.  

If you are worried about the value of your UK pension here in Spain, you may be considering returning to the UK. But, will that actually increase the value of your pension in real terms? The honest answer is that it is very unlikely to increase the value of your pension in real terms, and there are some very good reasons for that.

The socalled "Brexiters" were quick enough to shout about the benefits of leaving the EU, and sadly many people believed them. The fact is that even if you are receiving your pension into a UK bank, you are likely to have face the fact that it will be worth less. Why?

When you take a closer look at the UK economy, you will soon appreciate that very few goods are manufactured in the UK. Big ticket items such as refrigerators, washing machines and many other household goods, are imported from the EU or other countries. The drop in the value of the Pound will make it more expensive for UK householders to purchase these items.

What about energy? This is another part of the UK economy which will be affected by the poor value of the Pound. Today, the UK buys a lot of energy from other countries, and will continue to do so. The payments are being made in Euros to foreign energy generators, and they are probably going to be very relucant to accept Sterling in payment of their bills. Will the energy companies or the UK government absorb the difference? That is very unlikely and the end result will be that energy prices will rise, and the consumer will have to pay for that.

Are UK exports going to be that great? The likelihood is that exports to other countries may even go down. It has nothing to do with exchange rates, but it has to do with the tariffs, and so called commodity codes. Cars manufactured in the UK may have tariffs imposed on them, and that means that they will become more expensive to the end user. Reading the foreign press, it is not the only factor EU consumers are worried about. They are worried about the ongoing costs related to cars such as spare parts. 

All of this will, will have financial implications for the UK. The only good thing so far could be that it could be cheaper to top up your UK State Pension if you have to buy currency in order to do so. I just checked out a couple of options to top up my UK State Pension, and was surprised to find how much I could save by using a quality expat foreign exchange service. If you need to top up your UK State Pension, now could be a very good time to check out rates of currency transfers. Really there has never been a better time to save on currency exchange rates if you need to invest in something in the UK. You may even want to check out the UK stock market. 

Are you a permanent Spanish resident? If you are a permanent Spanish resident in receipt of a UK statement pension, you may be feeling the pinch by now. The pound is a an all time 30 year low against a range of currencies. Today, 1 Pound will get you Euro 1.11. you may not see an immediate impact on your UK State Pension or private pension, but eventually you will.

Most UK State Pension payments have already been processed for the month of October, but you are likely to see a severe reduction in your November state pension as Pound is set do drop further according to many financial advisers. So, what can you do to protect your income here in Spain?

Savings in Spain

Of course, there are ways of saving money in Spain. The bank may not give you great interests rates on any savings you may have, and it is better to look at alternative ways of saving money. That means cutting back on your expenses.

First of all, you need to know what your expenses are on a daily, weekly, monthly and annual basis. Start taking a look at how much you are paying out and to who you are Paying the money out to. The best thing that you can do is to set up a spreadsheet and identify what you are spending your money on. Is there something in that spreadsheet that you don't need, or is there a cost that you can reduce? Sometimes we spend more money than we think we do. Once we have identified how we can budget better, we can start saving money.

Where Do You Bank?

Not all offshore bank accounts are outrageously expensive, and it could be a good idea to take a look at some of the players in offshore savings market. Nationwide International is one of the better options. They offer a range of currency accounts including Sterling, Euro and US Dollar accounts. The fees are very low, and you will also receive interest on many of the accounts. Even their instant access account has a certain amount of interest.

How do You Bring in Your Money to Spain?

This is certainly an important option to take a look at. Foreign currency transfer companies have become very popular in recent years, and they can actually help. It could be a good idea to not transfer in your UK state pension once month a month. If you can, try to transfer in your UK pension every three months instead. Talk to a specialist on foreign currency rates, and they should be able to help you. Many of these companies forward contract in, or hedge, on better exchange rates. Privately, these exchange rates are not available to you, but you will find that many of the foreign currency transfer companies out there, can help you to access better rates. Look for deal on expat currency exchange and you will find a variety of different companies.

There are many ways to make the most out of your UK State pension. Above all, make sure that any services that you contract are legal, and offer protection. Financial advisers in Spain seem to be found on every street corner, and not all of them are genuine. Make sure that you deal with a registered company which can offer you full financial protection. Remember that investments can go up as well as down. This is not the the time to invest in anything risky, stick to safe and trusted investment plans.