Eight tips to straighten your wallet
October 31 marked World Savings Day – a day dedicated to encouraging people around the world to save money. In the United States, millennials and millennials are winning, with 60% more financially confident and able to save more money, compared to pre-pandemic times. The same cannot be said of their Millennial and Gen Z counterparts in South Africa.
A recent Budget Insurance poll found that 71% of respondents born between 1981 and 2003 were unable to save more money than in the pre-Covid era.
And while 58% of those surveyed in the United States have been successful in creating new savings goals due to changes in their spending habits and saving at least $ 1,000 since the start of 2020, South Africans have simply too many months at the end of their money.
A difficult economy and the undeniable impact of Covid-19 have had a major effect on our ability to save. Smart changes, however, can pave the way for a profitable future.
Here are some financial habits you can adopt right now:
- Budget. Budgeting is the holy grail of smart money management. To budget, start with a list of fixed expenses and other monthly deductions. Take a close look at what you are spending your money on and identify where you might be ‘leaking’ money on non-essentials like takeout, entertainment, and satellite TV, as well as essentials like than your cell phone, shopping and transport. Once you’ve identified the areas where you could spend less, start cutting back.
- Remember, even the smallest adjustments can make a significant difference in the long run. Use the extra money you have to pay off your debt faster, starting with the ones with the highest interest rates. As your debt repayment decreases, you will have more and more money to spend on personal savings and other more worthwhile causes, such as saving for retirement planning or a retirement plan. deposit for a new home.
- Set a savings goal for yourself and consider saving as a non-negotiable and essential âexpenseâ on your monthly budget. Whether your goal is to set aside R150 or R1000 per month, put it in your budget and stick to it.
- Be honest on your debts and expenses so that you have a clear and realistic picture of your financial situation.
- To show creativity when looking for ways to cut costs. For example, you could start ski lift clubs to save money on gasoline and encourage your family to turn off lights in unoccupied rooms to save on electricity costs.
- Put away your credit cards. Do not carry them in your purse or wallet as you might be tempted to spend them. Instead, have a debit card for your daily purchases and save for the more expensive things you want.
- Fuel, water and electricity. Budget Insurance calculated that driving smart and working sparingly with water and electricity – thanks to water-efficient taps, energy-efficient appliances, turning off non-essential appliances, and maintaining and checking your vehicle. and driving smart – could save you around R20,000 every year.
Hard times are a massive test of our financial resilience, but they also present a great opportunity to rethink the way we spend, save and invest, make the necessary changes and move from a difficult situation to that. to make ends meet for prosperity. live a life where we can afford the essentials we need, the investments we need to make, and the luxuries we want.
Susan Steward is with Budget Insurance.