How you can stretch your salary every month
Are you struggling for cash every month? Have a look at these tips as they may be of use to you...
Research by First National Bank has found that middle-class South Africans spend up to 80% of their salary within five days of being paid.
Stats have also shown how many South Africans live beyond their means and depend on credit to make it through the month.
If you are one of those who wants to ensure your salary lasts you the entire month, then look at making these changes:
- Have a budget and stick to it. Many people make the mistake of not planning how they will use their money. This, unfortunately, can result in many people losing track of their spending and end up using money on the wrong things/not having enough to pay for their debt.
A budget allows you to plan properly and see how to best allocate your income.
READ: Middle-income earners spend 80% of salary inside five days
- Don't spend more than 20% of your salary on wants. It goes without saying that you need to spoil yourself or reward yourself for all the hard work. However, don't use a lot of money on buying things that you can live without. Also, be careful of what you do for fun. There are fun activities that you can enjoy for free or without spending too much money.
- Do monthly savings for clothes and other essentials. Instead of buying clothes every month, rather have a savings account for clothes and you can target sales at stores to get items at a discounted price.
- Set aside money for fixing broken things around the house. Once in a while, you will need to do repairs around your house. If you save money monthly, you'll be prepared for when that time comes and won't have to use a large chunk of your salary.
- Shop around and compare prices for food. It is also important that you have a grocery list of the food you will buy to avoid spending your salary on items you already have in the house.
- Do not give in to pressure from your friends. Some people end up using a lot of money trying to entertain or please friends. This will only work against you in the end.
- Don't live beyond your means. Be realistic about what you can and cannot afford.
- Avoid taking on more debt. Don't rely on debt to support your lifestyle.
- Learn to know when you can or cannot help others. Some people end up not having enough money to survive the month because others asked them for help and they can't say no. If you don't have enough to help, say so.
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