Whether you’re saving for lobola, building your emergency fund or putting money away until you decide what to do with it, these tips can help you grow your savings pile.
In a survey conducted by Capitec Bank 51% said that debt is their biggest worry, while 26% said they had no savings. And because 77% didn’t have enough cash, they didn’t save.
Can you free up some money and start saving? Try some of these ideas:
There are many tried and true ways of how to save money each month.
- Every day put all of your loose change into a jar. Every once in a while deposit the money in your savings account. In time the money will grow into a little nest egg.
- Try to set aside a certain amount of money each month or each pay cheque for your savings. People have been doing this for years, but it takes discipline.
- Pay yourself first
One of the best saving strategies is to pay yourself first. What this means is that you designate a certain amount of your pay cheque as your pay and you pay that money to yourself before you pay your bills or anyone else. This amount can be R50, R100 or maybe 10% of your pay cheque. It can be any amount that you decide. The important part is that you pay yourself first rather than last. Most people pay all of the bills first and then save anything that might be left over. For most people, that method of saving doesn’t really work because nothing is left over to save.
If you pay yourself first, then money will get saved because paying yourself is now your first priority. The nice thing about this method is if your budget is a little tight, it forces you to make adjustments elsewhere and your savings continue to grow.
- Set-up automatic savings transfers
If you set savings goals but can’t ever seem to stick to them, setting up automatic transfers to your savings account makes it easy and simple to stay on course. Figure out your savings purpose and goal — maybe you’re hoping to buy a car in a few months or want to step up your retirement contributions.
Once you have a rand amount for your total savings goal, calculate how much you’ll need to save each pay cheque to reach it. Then use your bank’s online tools to set up a recurring transfer that moves money into your savings account as soon as you get paid.
- Reduce expenses
If you’re paying for subscriptions to magazines you never read or are paying more for your cable bill than you do for car insurance, it’s time to purge your recurring expenses. Spend about an hour reviewing recent expenses, keeping an eye out for monthly charges like cable bills and subscription fees as well as services you could do yourself, like housecleaning. Look for services you don’t use much or could live without and cancel them.
For services you need, contact your service provider ask if there are any current offers, promotions or discounts that you could take advantage of to secure a lower rate. Or, you could try and get an upgrade at the same price you’re currently paying.
If you can’t get a deal from your current service provider, shop the competition to see if other companies are willing to offer a discount to give you a reason to switch over. The best part about cutting or lowering monthly expenses is that it’s a one-time effort that will help you save money long term.
- Avoid emotional spending
We all have those days where we feel down in the dumps, and we rationalize that we will surely feel better after buying a new pair of shoes or some gourmet chocolate.
However, Kevin O’Leary of ABC’s Shark Tank and O’Leary Financial group urges, “Don’t go shopping to change your mood. It might make you feel better in the short term, but I promise: the long-term fulfillment of saving and growing your money far outweighs the temporary satisfaction of retail therapy.”
Instead, try to regulate your emotions by talking with friends and family, exercising, watching a documentary, or reading. Or, for a more harm-reductionist approach, try planning small, regular outings for yourself using your lifestyle expense budget. For example, plan to get a fancy massage at the spa or indulge in a lavish meal once a month instead of every time you feel stressed. Developing good coping strategies will eliminate bad spending habits and help you save money quickly.
- Become obsessed with success
The average person believes obsession is a bad word. The truth is wealthy people have a healthy obsession with getting what they want, which includes money. The wealthy see business and life as a game, and it’s a game they love to win.
This is the reason millionaires still go to work every day chasing their next success. Money to these people is no more than a gauge that tells them when they have achieved their latest target. For the ultra-wealthy, it’s no longer about money, but about success and accomplishment.
There’s nothing wrong with being obsessed with wealth, but winners love to win and the elation they experience after victory never gets old. If you want to attract more money into your life, think about what you want and what you’re willing to sacrifice to get it. Your discipline and dedication must match your desire.
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