Finance Pocket. Cut What Drains You, Diversify What Grows You

At first, before I started learning about personal finance, I thought improving it meant big sacrifices and complicated formulas. But after a few years of reading, exploring and trying things out, I’ve realized it mostly comes down to reviewing the basics—and being willing to try something new. Like many things in life, the most important part is just to begin.

n this post, I’m sharing a two-pronged approach: optimize your fixed expenses, like your electricity or gas bill, and start diversifying your income. Because saving is great—but increasing your income is powerful too.

The key factor that will determine your financial future is not the economy. The key factor is your philosophy.

Jim Rohn

Renegotiate Your Utility Contract

I get it—changing your electricity or gas company isn’t exactly an exciting monthly goal. But taking just 30 minutes to review your current contract could save you a surprising amount over the year. And with those savings? You could treat yourself to a dinner out, finally buy that book, or invertirlo.

Just last week, I made the switch myself and found out that May is actually the best month to get a great rate. It's not cold anymore, but the real heat hasn’t started yet—so consumption is low. Companies offer better conditions to attract new customers. So, now’s your moment!

What should you check?

In your electricity bill, look for two key numbers:

–Energy cost(€/kWh): I’m now paying 0.099 €/kWh with CHC Energía. Ideally, look for rates between 0.09–0.11 €/kWh. I prefer a fixed rate with no time restrictions..

–Power cost(€/kW per day): Mine is 0.083 €/kW/day. Try not to accept anything above 0.10 €/kW/day, and again, aim for a fixed price throughout the day.

Avoid contracts that include a monthly maintenance fee—it adds up quickly. It’s usually much cheaper to pay for any necessary repairs only when they actually happen.

In my case, there’s no long-term commitment. If there had been, it would have been a 12-month term. Set a reminder for 11 months from now and renegotiate. Every euro you don't spend on unnecessary electricity stays available for your goals.

Diversify Your Income Sources

A couple of months ago, I attended a talk by an experienced investor who gave some great, practical advice on improving personal finances. What I loved most was his approach to income: saving is great, but it has a limit. Increasing your income, on the other hand, has a much higher ceiling.

Here are a few ideas:

1. Monetize your skills. We all have something we do well, something that comes naturally. It might be tutoring in math or music, translating, creating ceramics, knitting, or making art. Trust in what you can offer, and promote yourself!
2. Create digital income. If you already know something that could help others, consider creating a platform or online course. You don’t need three university degrees to provide value. If you're passionate about a topic, learn about it and share what you've learned through an ebook, blog, newsletter, or social media.
3. Start accessible investments. If you already save a bit each month, consider allocating part of it to index funds, high-yield savings accounts, or crowdlending. Just make sure you understand the risks and benefits before jumping in. (You can start with this post.
4. Real estate management. Lately, I’ve become really interested in this area. I’m currently enrolled in the latest free course from Libertad Inmobiliariaby Carlos Galán. It opens twice a year and includes four super valuable lessons. I also recommend his blog. In future posts, I’ll share a recap of what I’ve learned—stay tuned.

One Simple Step

Take a few minutes this week to review your contracts and consider just one new income stream—no matter how small. Sometimes a simple action changes not only how we manage our money, but how we feel about it.

Never depend on a single income. Invest to create a second.

Warren Buffet

See you soon and happy reading!