The savings rate for Spanish households is approximately 10% of disposable income—an improvement over previous years, but still far below the 20–25% seen in Nordic countries. This guide outlines the most effective ways to save more and make the most of your savings.
The Problem with Saving in Spain
According to surveys by the Bank of Spain, 40% of Spaniards do not have enough savings to cover three months of expenses. The usual reasons:
- Low wages relative to the cost of living (especially in large cities)
- A culture of “I’ll save whatever’s left over” rather than “I’ll save first”
- Lack of automation: if the money is in the checking account, it gets spent
The most important mindset shift: pay yourself first
The most important concept in personal savings: transfer your savings on the same day you get paid, before spending anything. If the money is never in your checking account, it doesn’t exist for spending.
Practical implementation:
- Open a separate savings account (e.g., Revolut 2.27% or Openbank 2.02%)
- Set up an automatic transfer on the 1st of every month: the percentage you want to save goes into the savings account
- Live on what’s left in your checking account
The 50/30/20 rule
A simple framework for allocating income:
- 50% necessities: rent/mortgage, food, transportation, utilities
- 30% wants: entertainment, restaurants, clothing, travel
- 20% savings and investments: emergency fund, retirement, specific goals
Adaptation for Spain 2026: With rent in cities like Madrid or Barcelona exceeding 40–50% of the average salary, allocating 50% to necessities is difficult to achieve. In that case, adjust the 30/20 ratio—the important thing is that savings account for a fixed percentage, not that it be exactly 20%.
10 saving methods that work
1. Monthly budget (30 min per month)
Tracking expenses for 3 months reveals where your money is going. Free tools: Revolut app (automatic categories), BBVA app (expense analysis), Google Sheets.
2. Cancel unused subscriptions
The average Spaniard has 4–6 active digital subscriptions. Quick audit: review the recurring charges on your account from the last 3 months. Netflix you don’t watch, gym you don’t go to, software you don’t use—cancel everything you don’t actively use.
3. Negotiate insurance and services every year
Insurance policies (home, auto, life) often have a loyalty penalty: new customers get better terms. Call your insurer when it’s time to renew and threaten to switch—they usually offer discounts of 10–20%.
4. Eat at home more often
Spending on restaurants and bars is typically the second-largest discretionary expense after entertainment. A home-cooked meal costs €2–5; a set meal at a restaurant, €12–15. Reducing your outings from 5 to 3 per week saves ~€150/month.
5. Cashback cards
Use cashback cards for expenses you’d incur anyway. Revolut offers cashback on payment plans; N26 on the Metal plan. Don’t spend more just for the cashback—just redirect existing spending.
6. Buy secondhand
Wallapop, Vinted, Milanuncios: secondhand clothing, furniture, and electronics at 30–70% off. For items that eventually wear out (kids’ clothes, occasional tools), buying secondhand is smarter than buying new.
7. Automate DCA (automatic investing)
Set up an automatic investment plan on Trade Republic or Scalable Capital: €50–200/month in an ETF or index fund. The money is invested automatically, without you having to decide each month. See the passive investing guide.
8. The digital envelope method
Divide your paycheck into virtual “envelopes” when you get paid: rent (main bank), leisure (Revolut), long-term savings (MyInvestor). The categorized money is spent according to its purpose, not based on what’s left over.
9. The 52-Week Challenge
The first week you save €1, the second €2, the third €3... week 52: €52. Total per year: €1,378 with very little effort at the start that gradually increases as the habit takes hold.
10. Make Your Savings Work for You from the First Euro
Every euro you save should generate something. Revolut (2.27%) or Openbank (2.02%) have no minimum requirements. €5,000 at 2.27% generates ~€113 net per year—the equivalent of a couple of extra free dinners.
The emergency fund: the foundation of everything
Before investing or seeking returns, build an emergency fund covering 3–6 months of expenses in a liquid account. Without this cushion, any unexpected event (car breakdown, temporary unemployment, illness) will force you to use a credit card or sell investments at a bad time.
Specific goal: if your expenses are €1,500/month, your emergency fund should be €4,500–€9,000 in an interest-bearing account that’s immediately accessible.