For so many of us, saving money every month is just not on our personal agenda. In fact, South Africans often spend more than they earn and incur more debt than they can afford. This year, let us do everything that we can to start saving money instead of spending it. Find out how you can start saving with these great tips and remember that this is your year to shine!
- Draw up a list of your monthly expenses. Don’t expect to get it right the first time. Be prepared to fine tune it over time as you come to grips with exactly how you are spending your money
- If you are finding it difficult to pinpoint exactly how and where you are spending money, try tracking your spending for a few months. You can do this by making a note every time you spend or by keeping all of your till slips
- Your budget should include a monthly savings amount, whether you are saving towards an emergency fund, your retirement or a short-term savings goal, for example your next holiday, family birthdays or festive season expenses
- Work with a personal financial planner to calculate how much you should be saving towards your retirement and where you should be investing your money. Your advisor should also be able to give you input on where you should invest your emergency fund and short-term savings, for example in unit trusts or a money market account
- Now it is time to compare your income to your expenses. If your expenses exceed your income then it is time to start cutting back. If you are looking for tips on how you can cut expenses read our Top 10 money saving tips
- Don’t be too hard on yourself. If you are new to saving give yourself time to adjust to living and spending according to a defined budget
- If you have a spouse or partner and perhaps even children talk to them about your savings plan. You will need their support and understanding
- Remember that saving is not an all or nothing affair. Saving just R200 a month is a great start that will earn you R2 400 a year!
Lastly, remember that saving money takes practice and it gets easier every day. So haul out the proverbial piggy bank and get cracking. You won’t regret it! Find out more about saving with unit trusts from 1Life.