Spending money is probably one of the easiest things to do, and if you are reckless with it, you will keep going month after month wondering where it all goes.
It is as simple as going to the shops without a shopping list and ending up filling your trolley with things you do not need or clearing that unbudgeted cart at 2am. Or even taking a spontaneous trip in the name of ‘you work hard you deserve it’.
These ‘little’ things may seem like they do not make a huge dent in your bank account but over time you will definitely notice and see that you have spent a lot of money on things you did not intend on spending money on.
One of your goals for 2023 if not already, should be to be more money savvy and paying slightly more attention to the things you spend your money on.
American Psychological Association has put together the following tips on how you can be more money savvy in 2023:
Track your spending
There are various apps you can download that will help you with tracking your spending like 22seven that was created by the Old Mutual group, Mint, Splitwise and Good Budget. Some of these apps will even compare your spending habits from previous months. This will help you keep track of where most of your money is going and whether or not you are falling off the track by doing some unnecessary spending.
Make a budget
Based on your salary and your monthly expenses, create a monthly budget and stick to it. You can either reward yourself with taking a walk at the beach, a television break or other free treats.
Make small lifestyle changes
You do not have to change your lifestyle completely. However, there are little things that we have made a part of our lifestyles that contribute to bad financial habits. For example, making coffee at home instead of making a stop at Starbucks every morning, packing lunch for work instead or ordering in everyday and cutting down on home entertainment so instead of having DSTV, netflix and Disney plus, subscribe to the one or two that you watch the most.
If you live by yourself, maybe you could consider getting a roommate, this can save you a lot of money. You could also get a low-stress, part time job.
Invest the money you save
If you haven’t started saving then this year should be the year you start. You can start saving even if you do not earn much. You have to think about the fact that what you start saving in your 20s will grow and be ready for you when you are ready to retire.
Examples of how you can make your money work for you in South Africa is:
- Government of South Africa Treasury Bills
- Money Market Funds
- RSA Retail Savings Bonds
- Fixed Annuities
- Dividend-Paying Stocks
Also see: Types of saving or investment accounts to have
