1. Take small steps towards your big goals
Always wanted to buy a house? A car? Or take a trip to Bali? These goals are all achievable in time. But remember, if you don’t start you will never achieve them. Write down your goals as well as all the small steps you can take to help you get there.
Tip: Don’t underestimate the power of cutting a few things out of your life to reach your goals. Cutting out one R15 cappuccino a day could save you over R5 000 every year!
2. Generate additional income
If you could benefit with an extra paycheck at the end of the month, there are ways to make it happen by using what you’ve got. Look at your assets and consider which ones you can use to get an income from. Have a spare room? Rent it out. If you have extra stuff lying around the house that you don’t want anymore, you could sell it online.
Tip: If you need credit, make sure you use it wisely. Consider your reason for applying for credit and ask, “Is this a want, or will it benefit my life, helping me to live better in the future?” Credit when used correctly can help you achieve your life goals.
3. Pay yourself first
By saving a bit of everything that you earn before you start spending, you will be paving the way for your own success. You don’t have to earn a lot to start saving, even putting away a little every month can grow into something big. Speak with your bank about an appropriate savings account to help get you started.
Tip: Set up recurring payments to take the thinking out of saving. The money will automatically be transferred to your savings account each month, making saving easier.
4. Take stock of where your money is going
This is a quick way to keep more of your paycheck. Browse through your bank statements and take note of your debit orders and recurring monthly expenses. Is there anything you don’t need right now? Cancel those debits orders, policies or services you no longer use. This money can be placed in a savings account, used to pay off debt or spent on things you actually enjoy.
Tip: Use a banking app to easily check transactions on your account, giving you line of site of debit orders and other key monthly expenditure.
5. Bank with a plan
Having a money plan means planning how you spend your income. This includes making sure you spend money on the right things, saving for the future, and not spending more than you earn. By compiling a monthly or weekly plan, you equip yourself to make a responsible decision when the temptation to spend money presents itself.
Tip: Investigate whether your bank’s app has a built-in budgeting tool so that you can plan on the go.