Over the next two weeks, we'll be sharing tips and tricks to help you reach savings success. Going from being a big spender to a big saver isn't always a natural transition. But, anyone can maximise their savings and decrease their spending with a little guidance. Here, we share money saving tips that will have your bank account looking like it's payday every single day.
Day 1: #MoneyMotivationMonday
Need motivation? The first step to starting your savings journey is to jot down why you want to start saving and remind yourself of this at the beginning of every week. Set a few tangible money goals - whether it's saving for a holiday or a new TV - and work towards them.
Day 2: Drop The Shop
Who doesn't love window shopping while browsing the Internet? But, before you know it, window shopping leads to 'Add to cart' and 'Thanks for your purchase'. Impulse buys can often sink your budget boat. To avoid temptation, unsubscribe from all the online shopping newsletters that find their way to your inbox and delete online shopping sites from your 'Bookmarks'.
Day 3: Suspend Your Spending
Still having a hard time controlling your spending? Declare one day a week as a 'spending-free day'. That means no lunch at the office, no beverages at the coffee bar, and definitely no trip to the mall after work. To make it stick, prepare your lunch beforehand, and leave your wallet at home. If you can make it through 24 hours without spending, you're on your way to being a savings hero.
Day 4: Start a Money Journal
One of the main reasons people have a hard time sticking to a budget is because they don't have sight of their spending. Start a money journal today to see where and how you spend your money. This will make it easier to track your spending and budget for the necessities.
Day 5: Start Planning Your Emergency Fund
Everyone should have an emergency savings plan. Falling into debt is easy when you don't have enough money saved to cover life's unexpected events. Ideally, your emergency savings should be equivalent to three months' salary or would allow you to cover three months' worth of expenses. While this might seem impossible, take a step towards this by creating a plan around how you could build an emergency savings pool. Step one: head to your bank and set up a separate savings account.
Day 6: It's Payback Time
Between overdrafts, credit cards, loans and store cards, most of us have many creditors to balance. The trick is to make sure you're meeting your payment obligations. Pay your debt on time so that you do not incur fees and charges for late payments. This is an important part of keeping your credit record healthy. Automate your repayments using online banking or set a calendar reminder so you don't miss any payments.
Day 7: Impulse Control
Impulse spending can be controlled. Create a rule to avoid spending unnecessarily – whether it's a 24-hour cool off period before you buy anything or creating a payback plan before you put a purchase on your credit card. This one simple act can help you turn the tide on impulse spends. After all, your money could be better allocated to more important things.
Ready to take your #MySavingsPledge? Now's the time to speak to a Nedbank advisor.