How to save money in Spain

If investing in a pension plan is not your sort of “thing”, it would be a good idea to check out the alternatives on how you could best invest for your retire income. Many of us are now beginning to think that actual pensions plans are not such good investments when it comes to retirement planning. Part of the problem is that politicians have messed around with pension rules a lot, and now the entire market is beginning to look less attractive to investors ans savers. Also, are young people going to be able to afford to invest in both a pension and a home? Buying a new home is expensive enough these days, and many young people are not going to be able to buy a home and invest in a pension plan. So, what are the alternatives?

Foreign Exchange Rates

If you are interested in investing part of your income on the foreign exchange rate market, it may be a good idea to look into offshore banking. Not only do offshore banks offer better rates of interests, but many of them are also very flexible when it comes to allow you to trade in different currencies. You may be able to move your money around different currencies much quicker when you have an off shore bank account. You may not want to move your money more than once a year, but is always a good idea to keep your eyes in the foreign exchange rate market.

Stock and Shares

Do you want to invest in the stock market? The stock market can be a very risky place, but at the same time, you can make a really good profit by investing in the stock market. Hiring a stock broker is one way of doing it, but you could learn how to trade yourself as well. There are a number on sites online which can help you, and point you in the right direction. It is called self investing and has made a lot of people a lot of money. Just make sure that you do not risk all of your capital when making your investments. There are plenty of online sites where you can receive good advice and you may even want to check out Youtube.

Property Market

The first thing you want to do is to pay off your own mortgage. Once you have done that, there is no reason why you cannot look into buy to let. It is a good idea, but make sure you invest in a good area. Buying a buy to let property abroad may not be the best investment. It would be better to invest in a country like the United Kingdom to make sure you get a good return on your investment.

We do tend to be a little bit worried about investing on our own without using a financial adviser, but it is one of the best way to make the most out of your money once you have learned how. That knowledge is not going to come over night, and you may have to study a bit. Above all, don't be frighten of offshore banking and foreign currency exchange rates. You will be pleasantly surprised when you discover how easy it is to be your investment adviser, and invest on your own. Remember to start with small amounts, and never invest more than you can afford. More than anything, learn the importance of saving money. 

Once you retire, you are more than likely to want to worry a bit less, and enjoy life to the fullest. For some, that is not very easy to do as they have not looked after their retirement capital and may see a lower return on their pension pot than they would have thought. This is really the time of life when you want to make sure that you have spare cash, and a good retirement income, will ensure that you can enjoy life.

1 Be An Active Pension Planner

Don't sit back on your laurels and assume that you are going to have enough money to live on in your retirement. Things change all of the time in the world of finance, and it is a good idea to complete your own pensions review. It is worth remembering that investments go up as well as down, and you need to stay on top of things to make sure that your retirement investments are in the right places.

2 Don't Rely On One Source

You should not rely on one source, or income revenue stream, when it comes to your pension. Today, the financial markets are much more volatile, outside changes such as new governments taking over, may influence your pension investment. Investing in stocks and shares is not a bad idea at all, but income from stocks and shares should never be your only income when it comes to your pension.

3 State Pension

If you are fortunate enough to be able to access a State Pension, you should by all means do so. But, in the years leading up to your retirement, you should check on your State Pension. Are you going to receive your entire entitlement, and have you paid in enough to your State Pension? If you have not paid in enough to receive your entire State Pension, it might be a good idea to check if you can top it up. Make sure that it is a cost effective option, and that your entire pension investment planning will benefit from your decision.

4 Work Out How Much You Need

Something that a lot of pensioners forget about is to work out how much they need. It is easy to presume that you are going to have enough money to cover your daily living expenses, and to go on on all of those holidays that you would like to take. Could it be a good idea to angle your investments to your personal needs? You may for instance want to have one particular investment which will cover your daily living expenses, and then another one which will cover the fun stuff such as going on cruises.

5 Keep Paying Into Your Pensions

If you do have a personal pension plan, you should try to keep paying into it as much as you can afford. Private pension plans are based on the idea that you will be buying an annuity at the end of the plan. There are other options now, but for most people pension annuities are still the best way to ensure they have enough income in their retirement. Most pension annuities are easy to contract, and you will find a good range of them out there. The amount of money which you have been able to save in your pension plan, will set the limit for the pension annuity that you can afford to buy.

6 Pay Off Your Debts

If you have debts nearing retirement, you should be absolutely honest with yourself about them. Hopefully you will have paid off the mortgage, but you may have credit cards or loans outstanding. Make sure that you know how much you owe, and then sit down and think about how you can pay it off. Don't be tempted into things like loan consolidation. It sounds great, but most of the time it works out very expensive. Stop spending on your credit cards if you have a balance at the end of every month, and settle your loans. You can even ask for a loan settlement.

7 Switching Your Pension

Should you have been involved with several workplace pensions schemes during your working life, it is a good idea to take a look at them. Most people tend to ignore their workplace pensions once they have left the company, but they are doing so at their peril. Of course, most companies don't want you to remove your pension, but it is a good idea to switch if you are not getting the best return on your pension. Modern pensions are often cheaper to run thanks to new technology, and you should really find out if you can put your all of your workplace pensions in the same pot. It is one way of boosting your retirement income for when you finally retire.

8 Investing in Bricks and Mortar

Investing in bricks and mortar is always a good idea but it should not be the sole capital for your pension investment. Remember that the housing market can crash as well as the stock market, and only invest in bricks and mortar after having checked out the additional costs. You may have to borrow the money to purchase the investment, and then you will also have maintenance. But, this could be a good route to go down if you like to rent out a property. Allow the rental income to build up, and use it towards your pension. You may even be able to pay it into a pension scheme, or put the money into a trust. When you are approaching your retirement, consider selling your bricks and mortar investment, and put additional income in a special scheme. This could be your cruise budget!

9 Private Health Plans

Is it a good idea to invest in a private health plan? It could be a good idea to invest in a private health plan. When you get older, you are likely to suffer a few health problems, and it is often cheaper to start to pay into a private health plan when you are younger. Many of them offer excellent terms, and with so many national health services around the world in crisis, private health plans could be a worthwhile investment.

10 Save On Tax

Smart tax planning is an essential part of good financial retirement planning. It is all too easy to assume that the tax man is going to be nice to you when your retire, but he may not be nice to you at all. Seek the advice of professional financial advisers and make sure that the company you use, are qualified to hand out advice. Many companies are only after earning commission, and may not have the best ideas. If you are not comfortable with your financial adviser, you should immediately step away.

Finally, are you accessing all of your benefits? Check if you are entitled to any special benefits. It could be that if you are looking after the grandchildren, you may even be entitled to Grandparents Credit, or discount on your council tax. Remember that if you don't ask, you don't get. Asking questions and staying on top of your pension planning, is what is going to make your retirement more enjoyable. Being able to afford to do the things that you would like to do, is after all what a retirement should be all about. A good place to get advice if you are British, is to contact the Government's Pension Wise service by calling 0800 134 3944. You can also learn more about this service by taking a look at www.pensionwise.gov.uk.  

Many people who work in Spain still do not plan for their retirement. Planning for your pension when you work in Spain is just as important as planning for your pension when yo work in the UK. Spanish banks are keen to help you, but the problem is that you may be in a unique position. Just like me, you may have a private pension and state pension in the UK. You may have other investments in the UK as well. Asking a Spanish bank to help you to invest for the future may not be your best option as I have personally found out.

Take Your Entire Pensions Pot Into Consideration

The first thing you need to do is to establish your pensions pot. You may want to take into consideration private pensions as well state pension. If you are living in Spain, it is unlikely that you are still contributing to them, but there are people who still contribute to UK based pensions. For instance, you may even be topping up your state pension once a year.

Property Abroad As Part of Your Pensions Pot

Some of us still have UK property we may be renting out, and we consider that property part of our expat pension pot. Spanish pension providers would find that very hard to handle, and it certainly presents a challenge with Brexit coming up. It would be better to complete a full expat pensions review to make sure that all of what I like to call “pensionable” assets are taken into consideration when planning for your retirement.

A Flexible Expat Pension

Are you going to be staying in Spain when you retire? As people have become more and more “transitional” in recent years, it could mean that you will be spending your working life in Spain, but retiring in a different country. In that case, it means your pension needs to be as flexible as you are. Of course, if you have worked in Spain, paid tax and Social Security, you will be entitled to the Spanish National State Pension. At the moment it is easy to claim the Spanish State Pension for UK expats, and should hopefully continue to be so. Bear it in mind when you plan your pension as it may form part of your total pension income one day.

Still, you really do need to think ahead and find a flexible pension solution for you. It is best to speak to a company that specialise in dealing with expats pensions and understands expat pensions reviews. If you can the balance right, it may even be worth it for you to pay into a private pension here in Spain. After all, contributions towards a private pension here in Spain can be used to offset against tax, and as we all know, every little bit helps when it comes to retirement and pensions.

Also, don't forget about expat health insurance. At the moment you are probably covered by the national system, but what will happen when your retire. You may find that you are covered in Spain, but if you move to another country, what happens then. Expat health insurance is a very specialist subject, and it could be a good idea to start making some provisions now.

Almost 51% of your Spanish electricity bill goes towards taxes and other government charges. This is a staggering amount and you can't avoid paying it. Spanish VAT on electricity costs is a 21% which seems to be a bit unfair for a service that you cannot live without. Many think that they are going to save money by moving to Spain, but in fact, sometimes the opposite is true. When it comes to daily living expenses in Spain, it is just as expensive living in Spain as it is living in the UK. But, there are ways you can save money on electricity costs and energy costs in Spain.

How I Have Saved Money on Energy and Electricity Costs in Spain

There are several ways in which you can save money on electricity and energy costs in Spain. I started to identifying the most expensive areas of my home. There are some areas of your home where you spend more money than others, and if you find out what they are, you can start to address cost issues.

It may not be the areas that you spend most of your time. It is the areas where you use the most energy that you want to take a look at.

Top Energy and Electricity Tips in Spain

You need to come at this problem from all angles if you are serious about reducing your electricity and energy costs in Spain. There is not just one solution to this problem, so it is best to make sure that you look at all aspects.

Getting the Right Deal on Electricity

It is important to get the right deal on electricity in Spain. The main electricity supplier, has got all different deals going on. Their main deal is Night and Day, and allows you to use electricity at a cheaper rate during certain hours of the day. Of course, there are other suppliers in Spain as well, but I have not found them to be any cheaper than Iberdrola. You have to be careful with their peak charges and maintenance fees. Their customer service skills are not that great, and the sales staff are a bit too pushy for my liking. Despite everything, I think that Iberdrola is still the best supplier.

How Do You Cook Your Food?

The kitchen is one of the most costly places in the home when it comes to energy and electricity charges. It is really important to make sure that you have appliances which are rated with the best electricity rating that you can afford. However, that is not the end of it. If you want to save a lot of money on food preparation, you should look into some of the alternative cooking methods.

Save Money by Steaming Your Food

Steaming your food is not only better for you, but a steamer uses virtually no energy. I have long ago stopped boiling my vegetables, and I now steam them instead. It is not only vegetables which benefit from being cooked in a steamer. Stop boiling your potatoes and steam them instead. As a matter of fact, you can prepare a complete meal in a steamer in about half an hour.

Invest in a Slow Cooker

Slow cookers, or crock pots, are very popular in the United States. You can buy them in Spain as well, and they have become more popular in recent years even with the Spanish population. Since discovering my slow cooker, many of my Spanish friends have invested in slow cookers.

Of course, you can prepare an entire meal in a slow cooker, and the food tastes delicious. Not only can you go out and leave your slow cooker to it, but while you are out, your slow cooker saves you a small fortune in electricity costs.

Mini Ovens

Many ex-pats wonder why the Spanish are so fond of their mini ovens. Mini ovens are a great way to save on electricity costs. They heat up fast and cook the food that little bit quicker. If you enjoy simple meals such a jacket potatoes, they are the ideal way to prepare a quick meal. Yet another way to save money in Spain.

Do You Need the Dishwasher?

If there are only a few of you, you should not really need a dishwasher. Not only are you buying another detergent, but you are also using up a lot of water and electricity. Most hand washing up liquids are very environmental friendly, so you can use the dish water to water your plants in the garden or in the home. Another advantage of doing the dishes by hand.

Take it Off Stand By

Televisions and modern sound systems are often left on stand by. Do they really need to be? Take them off stand by and you will soon notice that your electricity costs will go down. It is a quick and easy solution to a very common and over looked electricity cost which many forget about.

You can also save water costs by using low flow water appliances. They are becoming more and more popular, and plumbers now recommend them. Also, don't forget to do the laundry at a lower temperature using a quality detergent and softener. There are other reasons why you should use a quality detergent and softener, but more about that later.

Start looking around your home and see what ways that you can come up with when it comes to saving money on energy and electricity costs. This savings tip is not all down to saving money on foreign exchange rates.