Save money without changing your lifestyle
For many South Africans, finding ways to save money each month means having to cut down on expenses. This means making some adjustments to the way you’ve been living. The good news is, those changes don’t have to be drastic. Below are a few simple steps you can take to save money without having to alter your lifestyle.
5 ways you can save money
1. Guard against impulse purchases
How many purchases have you made that you later regretted? Limit your impulse purchases by applying some rules. The most popular rule is the 72-hour rule — wait 72 hours before any purchase to make sure you still want to buy it.
- Analyse big purchases
Big purchases, like buying a car, a house or paying for a family holiday, will have a huge impact on your spending and ability to save. So before making any of these financial decisions, consider what your income is and what the cost will be on your lifestyle. Think about whether it’s something you can save for and buy later.
- Evaluate your monthly spend on data and calls
Many people get a nasty surprise when they add up how much money they have spent on cellphone and data purchases. When shopping for new cellphone or data contract, compare offers based only on what you need and what you can afford.
- Stick to a budget
The first step to saving money is to create a monthly budget and stick to it. This will give you a clear indication of how much you’re earning versus how much you’re spending. More importantly, it gives you a good indication of how much you can put away in your saving accounts.
- Save and invest
The ultimate goal is not to disrupt your lifestyle that much, but to make sure you spend your money wisely and efficiently. Take a look at some of African Bank’s short-term investment options. Whether you’re a beginner investor with a small budget or a seasoned investor with years of savings behind you, there’s a solution for you.
Perhaps even more important than drastically cutting your spending is changing the way you think about money. Instead of spending it on more stuff, which you will inevitably have to replace in the future, why not spend it on personal experiences with your friends and family? Why not invest it in a more fulfilling future?