Saving is one of the most important financial skills a person can develop, and in today's digital age, cryptocurrencies have emerged as a viable option to diversify our options. In this 30-day challenge to save both in the field of personal finances and in cryptocurrencies, we will see some common practices and effective strategies such as DCA (Dollar-Cost Averaging) and the programmed purchase in the crypto ecosystem.
Savings plan in 30 days in traditional finances
Creating a 30-day savings plan requires setting clear goals, identifying savings opportunities, and developing a strategy that can be maintained. Here is a step by step to help you save money in one month. The most important thing before starting: track daily writing down every expense and savings to keep you focused and save change with a specific bank account to save the daily change.
Day 1: Set a savings goal
- Define how much you want to save- Decide a specific amount you want to save in 30 days.
- Split the goal: Divide the total amount by 30 to find out how much you should save each day.
Day 2: Evaluate your current expenses
- Review your latest bank transactions– Make a list of your essential and non-essential expenses.
- Identify spending patterns: Discover where you could reduce expenses.
Day 3: Create a monthly budget
- Assign limits- Set a spending limit for each category, such as food, transportation, entertainment, etc.
- Leave room for unforeseen events- Set aside a small percentage for unexpected expenses.
Day 4-5: Reduce unnecessary expenses
- Cancel unused subscriptions: Review them and eliminate those you don't use frequently.
- Compare prices- Buy cheaper or discounted products or services.
Day 6-10: optimize your purchases
- Plan your meals: avoid eating out; prepare your food at home and make a weekly shopping list.
- Shop at local markets: Sometimes prices are lower than in supermarkets.
Day 11-15: save on transportation
- use public transportation: instead of driving or taking taxis.
- Walk or bike: If possible, avoid transportation altogether.
Day 16-20: Minimize entertainment expenses
- Find free activities: such as parks, museums with free admission or free events.
- Reduce streaming consumption: Limits the use of paid entertainment platforms.
Day 21-25: take advantage of the discounts
- Use coupons and offers- Check if discounts are available before purchasing.
- Buy in bulk: This may be cheaper in the long run.
Day 26-28: Review your progress
- Evaluate your savings- Compare what you have saved with your daily goal.
- Adjust if necessary: If you are below the goal, consider cutting more expenses or increasing your daily savings.
Day 29: plan for the future
- Reflect on the month– Identify which strategies worked best.
- Make adjustments for next month: Plan how to continue saving in the future.
Day 30: celebrate your achievements
- Check your goal achieved: If you met your goal, congratulations!
- Reward yourself in moderation: If you feel comfortable, you can give yourself a little pleasure for having reached your goal.
If you want to go a little deeper into the personal finances, here we leave you this course that you can do for free.
Strategies for saving in cryptocurrencies
First of all, you should know that saving in cryptocurrencies is something that we can all do. For example, it is enough with create an account on Bit2Me, complete your registration and with this you will be able to buy cryptocurrencies. However, you must keep in mind that saving will ask a lot of you, and the best thing in those cases is to have a clear strategy of how you want to carry out your savings, in order to be as successful as possible in achieving your goals.
That said, the two basic strategies for this are Dollar Cost Average (DCA) and scheduled buying. Here we give you a brief explanation of them:
Dollar Cost Average (DCA)
When we talk about Dollar Cost Average (DCA), we are talking about an investment strategy that consists of buying a fixed amount of money in a financial asset on a regular basis, regardless of its price. This is a strategy that seeks to mitigate the impact of market volatility by spreading purchases of an asset over time.
The mechanics of DCA are simple. A saver sets a specific amount of cryptocurrency they wish to purchase at regular intervals (e.g. monthly or quarterly). With this amount, the chosen cryptocurrencies are purchased as required. When the price of the asset is low, more units are purchased, and when the price is high, fewer are purchased. In this way, the average cost per unit smoothes out over time.
Using DCA as a savings strategy gives us several advantages. First, by buying regularly, you decrease the likelihood of making a significant purchase just before a price drop. In addition, it encourages savings discipline, as it establishes a plan that helps savers maintain the habit of saving. Second, DCA is an easy strategy to understand and execute, making it accessible to anyone.
DCA example
Let's say you decide to save €100 in Bitcoin every week for 4 weeks. This means that at the end of 30 days you will have purchased a total of €400 worth of Bitcoin. If the price of Bitcoin fluctuates, your average acquisition cost will adjust, which can help you avoid significant losses. But also keep this in mind, if the price of Bitcoin in that month increases (for example, 5%), in the end your savings will be €420, a significant profit that can be multiplied if you carry out this strategy in the medium or long term.
Scheduled purchase
The second savings strategy is known as Scheduled Purchase. This strategy is very similar to DCA, but we leave out the purchase adjustment according to the price of the asset. The basic idea is to buy a certain amount of cryptocurrencies in a stipulated time, without considering anything else.
For example, on Bit2Me you can schedule a scheduled purchase of any of the cryptocurrencies available on the platform, allowing you to save money automatically.
Roadmap of the challenge of saving with cryptocurrencies
Now, if you are new to saving using cryptocurrencies, here is a small roadmap that can help you start a project of this type. Keep in mind that the following points are the most basic elements to start a savings schedule using cryptocurrencies, but they will undoubtedly help you get started.
Day 1-6: Understanding Cryptocurrencies
Before you dive into saving with cryptocurrencies, it's essential to understand what they are. Remember that cryptocurrencies are digital currencies that operate on a decentralized network, mainly through blockchain technology. Bitcoin (BTC) and Ethereum (ETH) are two of the most popular and recognized cryptocurrencies.
Study the cryptocurrency in which you are going to save, its technology, its future perspective, how its markets have behaved, what has been its growth in different time windows (e.g.: last week, last month, last semester, last year, last 5 years), but above all knowing the future roadmap and its community, are some of the things you should know and understand before deciding whether to use it as a tool now.
During those 6 days you can take this course that we propose, completely free, with information about the main cryptocurrencies.
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Day 7: Choose a platform
Once you know and have chosen the cryptocurrency in which you plan to save, you will need to choose the platform with which you plan to make cryptocurrency purchases. This means registering, doing the corresponding KYC/AML (all exchanges now ask you for this), and setting up everything you need to make your first purchase.
In this case, you have many options, but the best one is Bit2Me. First of all, Bit2Me is a Spanish platform, with more than 10 years in the sector, fully regulated, with tools that will help you save in a very simple way, since we facilitate the generation of DCA and programmed purchase strategies.
In addition, we have an impeccable security record, without having suffered any hacks and with a platform in constant evolution, with the firm intention of providing you with the necessary tools to help you on your path through the crypto ecosystem. If all this has not convinced you, here you can read a Comparison of Bit2Me with Binance or Bit2Me with Coinbase.
Day 8-29: Your first savings
With your account set up, it's time to start your first savings. Depending on the strategy you want to use (DCA or simple scheduled purchase), and your budget, you start with your first purchases and observe their behavior at the end of the first month. So for example, if you had bought $50 per week, for the entire month of July 2024, at the end of the month you would have bought a total of $200, but said purchase could currently have a crypto value of $255.
Final: monitor and adjust your strategy
Ultimately, it is important to monitor the performance of your purchases and adjust your strategy as necessary. Here are some recommendations:
- weekly review– Take time each week to review the performance of your purchases. This will help you understand the market and adjust your purchases if necessary.
- Continuing education- Stay informed on market trends and cryptocurrency news. This can influence your investment decisions.
- Additional Diversification- Research other cryptocurrencies or digital assets to diversify your portfolio.
- Long-term investment: If you feel comfortable, consider holding your cryptocurrencies for the long term, rather than selling them quickly.
Knowing all this, remember: Although cryptocurrencies offer exciting savings opportunities, they also carry significant risks. Therefore, it is essential to spend time researching and educating yourself about the market, the different cryptocurrencies available, and the trends that can affect their value. The rest is simply maintaining consistency with your purchase plan and roadmap, especially when you plan all this for the long term, and you are able to observe the different stages of the market (with its bullish and bearish times).
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