Financial Wellness 2020
How You Can Save Money Each Month
The South African economy has not been doing citizens any favours; currently we have to deal with water shortages and load shedding and this has a negative impact on us all.
Many South Africans are living from pay cheque to pay cheque - which isn't how you build a sustainable future for yourself and your family. Improving your financial wellbeing starts with saving, and while that may sound simple, so many South African's ignore this basic principle.
Make saving your priority
The first step is a psychological one and probably the hurdle most people stop at. Before you even pay your bills, you should be putting away part of your disposable income to work for you. Your goal should be to save at least 10% of your pre-tax earnings. Whether you are saving for a house or your retirement, your first step will always be making your savings your first payment.
Turn saving into an enjoyable act
Turn savings into a game. Instead of force-feeding budgeting tips to yourself, look at this as an adventure. Try to top your savings each month or compete with friends or spouse. You can also make savings a family affair.
Start with a savings plan
The best time to start saving is TODAY! Procrastination is enemy number one. Each day you wait you lose out on potential earnings through interest or upturn in the market, if you don't have skin in the game, you won't reap any benefits.
Create a budget
A great way to help save money is to create a budget, and then stick to it; this will give you oversight and a rigid structure to adhere to when you're still finding your feet when it comes to saving. Make yourself aware of where your money is going and how your spending habits compound over time. Budgeting will also help avoid impulse buying and keep you on the straight and narrow towards your saving goals.
Define your saving goals
What is it you want to put your savings towards? It could be goals such as:
A car
A house
Your Kids
Education
A Trip overseas
All the above require a long term commitment to saving, so place these items on your budget to remind you what you're working towards; it will help you focus and reduce the chances of you spending money on products and services that would only serve to distract you from your ultimate goal.
Reduce your monthly obligations
One of the easiest ways to let money creep out of your account each month is through various debit orders. If you have subscriptions or monthly payments like TV, Music Streaming, Magazine subscriptions that deduct money from your account each month, then it’s time to review these payment arrangements. Look at the ones you need, reduce where you can or cancel all non-essential subscriptions altogether.
Reduce your expenses
You're not going to be able to save or increase the amounts you can save each month if you keep on spending without thinking about it. When drawing up your budget look at all your expenses and remove those that are non-essential.
Source:
https://www.nichemarket.co.za/blog/money-talks/personal-saving-tips