Publish Date: 06/02/2019
How to be successful at saving
Too much month at the end of your money? If you barely have enough cash to make it through the month, it might seem laughable to think you can actually save money monthly. The truth is, while saving money is a concept most people believe in, very few manage to do so. The reason for this, in most cases, is the ever-increasing cost of living.
Our take is: everyone has to start somewhere. Saving even a small amount will help and kick-starts the good habits that will lead you to financial freedom. We invite you to step into 2019 with a mind-set change. Below are our tips for helping you to start saving towards your future:
Ask yourself a few important questions: Is your household a one-salary home? What are your monthly responsibilities? Draw up a budget and work out your income-expenses ratio so that you understand where the cash leaks are. There’s no better way of knowing how much money you have than by asking yourself these important questions.
Then, consider spending money on the things you need rather than the things you want. When you get the urge to splurge, remember what you’re working with and that your financial freedom will bring you a lot more satisfaction than any temporary spending.
Whatever amount you decide to save – say, for example, you decide to save 10% of your salary – you need to start living like you’re earning 10% less. Choose which luxuries you’re willing to sacrifice for a more sound financial future. It’s time to start practicing the art of saying ‘no’ to frivolous purchases.
Focus on the most important tasks, which in this case is setting up a plan to save money each month. Like the first tip, start by listing everything you spend money on this month. By the end of this month, you will clearly see where your money is going. More importantly, you will start to see where you could cut some expenses and start saving.
Imagine what would happen if you found extra money in your monthly budget. Could you finally afford to go on holiday?
Shop around for a savings or investment product that will help your money grow. The interest you can earn depends on the type of product, the amount you save and the term of your investment. Use our handy online calculator to work out how much interest you could earn.
Figure out what your financial goals are – this will give you the motivation to save your pennies. Do you have a goal to pay off your debts, to save for a holiday, to buy a new car or even move apartments? Greater motivation means you just might reach those goals sooner than you expect!
By learning to save, you’ll learn a new habit — one that will literally pay off, all year long. So, know what you’re working with, set a budget, then look for an account where you can save or invest your money and stick to your goals.
About African Bank
Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.