A major misconception is that saving money is something only the rich can afford to do. But the truth is that anyone can save. Whether you are earning big bucks or a modest salary, a little planning and discipline can go a long way in helping you save some money each month.
The hardest part about saving is getting started. Whether you are saving to buy a car or towards a comfortable retirement, the thought of how much you have to save can be so overwhelming that many people are tempted to give up before they’ve even started saving.
Cebisa Mfenyana from Metropolitan shares 3 tips on how to start saving.
First step towards saving, one giant leap towards reaching a goal
Set a savings goal – if you know what you want to achieve, you’re more likely to stay focused and committed. An example of a savings goal is to save up for a deposit on a car over three years.
Make savvy lifestyle changes
Avoid being wasteful and take advantage of any opportunity to save money. Save on electricity by switching off the lights or using an extra blanket instead of turning on the heater.
Start small, save big
- The key to saving is to start off small. Do not underestimate the value of saving a few rands each week. Every little bit counts and every rand saved can go a long way towards helping you achieve your savings goals.
- By simply cutting down on one can of coke a week, you can save approximately R400 a year, or by saving on one box of cigarettes a week, you can put away approximately R1800 a year.
- Start saving as soon as you can, and try not to touch your money for as long as possible. This way you let the magic of compound interest kick in. That is when your interest earns interest, and effectively your money starts making you money.
- Don’t get discouraged if you do not achieve your savings goals straight away. These things take time, but the rewards will be worth the wait.
“Finally, it is a good idea to sit down with a registered financial adviser who can assist you with drawing up a tailored savings plan to help you achieve your goals.” Concludes Cebisa