Seven smart tips to help you save money
Following these simple yet effective tips will help you save money and achieve your financial goals.
Few South Africans have savings plans.
The high cost of living has led to many using their money to just cover their basic needs.
In fact, statistics have shown that South Africans are highly indebted.
But regardless of how much you make a month, it is advisable to save.
Even a small amount of money can come in handy on rainy days.
Let's look at tips to help you save money.
READ: Tips to help you have a meaningful conversation with your partner about money
Set a financial goal
Setting up a financial goal will help guide how much you must save and for how long.
Give yourself a target and be honest with how much you can really save.
Start with the little you have
Experts say that at least 20% of your income should go towards savings. However, not everyone can afford to save 20% of their income.
Start with the small amount you have available.
Include savings in your budget
Creating a budget will help you see how your money is spent.
After making a budget, track your spending and resist the temptation to buy things you haven't budgeted for.
Cut out unnecessary costs
Look out for some of the things you can cut out of your budget or reduce the amount of money you spend on things that are not necessities. These might include entertainment. Experts suggest that only 10% should go towards entertainment, but this will depend on how much your current expenses are.
Also, look out for deals/sales before making a purchase. You might save hundreds or thousands of Rands from sales which you can put towards your savings.
READ: How to learn to say 'no' to black tax
Save using the right channels
Save money where you can't easily be tempted to access it and use it.
Many banks and financial institutions offer savings plans where you can't easily access your money. In some cases, you will even be rewarded by earning extra interest.
Talk to your financial advisor about the best investment plan for you.
Be disciplined
One of the important things to note when saving is that you have to be disciplined. Stick to your financial goals and do not take out your money from your savings account unless you have to.
READ: Expert shares five smart tips for cash-strapped South Africans
Save any extra money you receive
If you receive a bonus or extra money during the month, choose to save it instead of just spending it on frivolous purchases. If you don't need the money for something important, rather put it away for a rainy day.
More From East Coast Radio
Image courtesy of iStock/ @Richard Darko