Saving money can feel like an uphill battle, especially if you have a lot of outgoings and simply don’t know where to start saving. However, saving is important as it allows you to have a back-up in case you need it – say for instance, your home needs an urgent repair, or you have a medical bill to settle.
Starting to save your money – even a little each month – can set you off on a good savings habit. With that in mind, here are some quick financial tips to get you started:
Set some goals – Everything is easier when you look at the bigger picture. What do you want to save for? Do you have something in mind you want to buy, or an amount of money you would like to have tucked away for security? Now you have that goal, how can you attain it? Consider setting up a spreadsheet and working out how much to put away each money to reach that goal.
Saving your money on pay day – It has been proven that putting money away into your savings account on payday is the best way to save money! Not only is that money now out of your current spending account so you can’t accidentally spend it, but you can see savings build up more quickly and you can get that psychological boost you need to keep going.
Investing – Wonga wrote a great piece on their top 10 financial tips for saving money. One of these was regarding investing vs saving. They say, “Start investing early – Saving is different from investing. Savings are normally low-risk funds that are short-term and easily accessible. Investing, on the other hand, is used in building wealth, and usually not easily accessible. While investments involve greater risks, they also yield greater returns. Start investing as soon as you can – it’s never too late.” If you want help on where to invest your money, it is wise to consult a financial expert who knows the market well and can advise you accordingly.
Cut back on groceries and use the extra money to save – Good to know says that you shouldn’t shop in the same place all the time out of habit – consider cutting back on your weekly food shop and you could really see a change in the overall price you pay. You might be able to get special vouchers or offers if you shop elsewhere. They say loyalty cards are great too if you use them wisely. That little extra money each week can go into a savings account and will soon add up.
Think ahead – only 6% of South Africans can afford to retire comfortably. It is important to have different savings accounts with different aims. We have already spoken about setting goals for your savings – but this should also include the distant future and your retirement. Many people think that this is so far into the future that they don’t have to worry about it yet. However, your retirement savings is probably the most important savings accounts of all.
To read more on topics like this, check out the lifestyle category.