So you’ve set out your budget, income, and expenses and afterward you’re left with near nothing? Well, believe it or not, there are simple, yet effective ways to save money. It’s all about being savvy with your money.
Here are 5 tips.
1. Needs vs Wants.
Because it’s so easy to confuse the two. It is therefore vital that you draw the line between them. Many times a need could be disguised as a want, for instance; purchasing a vehicle, this
could be seen as a need as we all need to get around, however, we neglect to remember that there are some very efficient transportation systems available ie; Uber, Gautrain, Busses or Taxis. As inconvenient as it may seem, until you are financially set to afford a vehicle bare with the latter.
2. Unexpected expenses!!!
Panic mode sweeps in immediately. Many times you really do not need to fork out a fortune to sort out a problem for instance; your iPhoneX crashes, ask yourself: do you really need to buy a brand new iPhone? There are much cheaper android phone alternatives for R600 a pop and does exactly what an iPhone does, slightly limited in functionality and spec but hey a phone is a phone right?
3. Entertainment on a budget
So you have a social life which is very demanding as well as taxing on your bank account. Entertainment bills can shoot all the way up especially if you’re always out with mates, try to cut down your entertainment budget by limiting yourself, set a budget for entertainment and STICK TO IT, avoid unnecessary parties, plan ahead on activities or just avoid it altogether, alternatively get Netflix or Dstv, join a gym, find a hobby, it’s the simple things in life right?
You really DONT have to follow every single trend out there. When it comes to purchasing shoes and clothing, brands are great especially for quality but opting for a pair of shoes from your local chain store won’t kill you. Shop at affordable clothing stores, switch it up, find sales on items. Shop for Winter in Summer and for Summer in Winter, retailers tend to dramatically drop prices to clear stock.
Yes, you can save hundreds of rands on this one, simply cash in on coupons(online), read store pamphlets to find sales, purchase in bulk. No name brand groceries never killed anyone, trust me. That R2 difference really helps.
These are 5 easy tips on saving, ultimately this is a guideline to commit to simple changes that won’t break your bank. You can still live a really exciting life and be financially savvy. Many times we make unnecessary purchases, rationalize expenses and prioritize saving be sure to keep track of your saving progress, start small.
Here’s a really cool budgeting tool (Smart Money Budget Planner), jump on at any time and see how much you can save. And lastly set goals so you’re able to work towards something.