Money Saving Tips

Money saving is arguably the most important part of being a functional adult. Whether saving for the house, school fees, holidays or just general saving to save, making sure you have money is the first step to financial freedom. With endless money saving tips, some extreme and some pretty silly, we have put together a few point that we think will help you get a handle on your savings.

Money Saving Tips:

Make saving a priority

While there are many distractions in life, drinks with friends, dinner with colleagues, or spoiling yourself with that amazing pair of shoes, saving should always take preference. Take money out of your salary the second you get paid, making sure that you have saved money before spending a cent. Savings can always be used, but if you wait until later in the month to put money away, often you won’t have much left to contribute. Not only for the poor, saving is important to a whole host of people facing life’s trials.

Create goals and rewards

Creating goals for yourself is always a great way to ensure you work hard at saving. Often we restrict ourselves to such an extent that we end up cheating at our own game – this is something smokers know well. Creating fair and achievable goals will let you reward yourself and push you to keep saving. Setting benchmarks is key, for example if you save R5000 then you can reward yourself with a nice dinner out, but ideally the reward won’t be counterproductive to the saving you have been working so hard at.

Write up a comprehensive budget…and stick to it

Draw up a budget and be strict about it. Budget for extra expenses, casual expenses and even what you might spend on nights out. It doesn’t have to be a complete list, but must include as many expenses as possible. Keeping to a budget will let you stress less, knowing exactly how much money you have to work with. This is one of the most important steps towards financial comfort and security.

Think far in advance

Plan for the future, don’t live month to month. While it’s easier to use the money at hand and worry about next month when it comes, planning for the next few months in advance lets you draw a complete picture of what you can afford. While R500 may not be a lot for one month when you think about saving up, over a year it turns into R6000, and from there it can only get more. Want to travel? Plan to save at least a year in advance and chances are you will have all the money you need, and if not you will know exactly what you still need. Loans can also be an option for planning in advance, but this is playing with credit so be sure you can afford it.

Automate your saving process

Automate as much as you can, taking out your own weaknesses or lack of self-control. Setting up a separate savings account with your bank, ensuring that your monthly saving are transferred as soon as you get paid, you will automatically save every month without having to do it yourself and possibly decide against it.

If you already find yourself in debt, trying to save to better your financial situation, try a consolidation loan. Grouping all your debt together into one monthly payment, this is a great start to turning your finances around.