Money saving tips amid tough economical times
Are you looking for tips to help you save despite the tough economical times South Africa finds itself in? These tips will help you.
Your income should go towards savings in addition to covering your living expenses.
If you don't know how much should go towards your savings, the 50/30/20 rule is a great budgeting technique that has been formulated to help you know how to divide your money into three primary categories. 50% should be allocated towards your needs, 30% towards your wants, and 20% should go towards your savings and debt payments.
According to a Business Tech survey conducted in January 2022, the majority of participants said they saved less than 15% of their salaries, and 35% said they didn't save anything at all.
Although South Africa is currently dealing with very tough economical times, you can still manage to save.
READ: The importance of being financially prepared for your child's education
Let's look at tips that can help you with your savings goals:
Start with any amount you can afford
Although the rule says you must save 20% of your income, if you can't afford to save that much money, start with what you have, even if it is R100 a month.
Start with short term goals
Having a goal will keep you motivated. A good example of short term saving goals includes paying off small debts or saving for a family vacation.
READ: When is the right time to save for your child's education?
Do a budget review and see what you can cut out
A budget helps you see where your money is allocated and keeps track of your spending. Review your budget by seeing what falls under the wants category and see if you can allocate some of that money towards savings. Also check your policies and subscriptions to see if you have any that you don't need.
Save regularly
One of the best ways to ensure you are disciplined in your savings is to make save regularly. Set up an automatic transfer for saving regularly.
Look for rewards programmes and specials
You can save so much money by looking out for specials and rewards programmes and then allocating that money towards your savings.
More From East Coast Radio
Image courtesy of iStock/ @ArLawKa AungTun