How to budget effectively
One way to budget effectively is to follow the 50/30/20 rule.
It divides your income into 3 parts:
- Needs (50%): Essential expenses to meet your basic needs, like rent, food and transport
- Wants: (30%): Non-essentials like hobbies, eating out and clothing
- Savings and debt (20%): Financial priorities like credit card debt, a retirement annuity and saving for holidays
Tip: Sign up for our free MoneyUp Academy to learn how to budget, save and manage your money.
How to use a credit card wisely
Using your credit card the right way can help you save money, build your credit score, manage expenses and avoid common credit card mistakes:
- Know how your credit card works: From the interest rate and minimum payments to any fees or interest-free periods
- Spend within your budget: Only use what you can afford to repay
- Don’t use all your credit: Try to use less than 30% of your total limit to build a healthy credit score
- Pay in full: If possible, pay your full balance every month to avoid interest. If you can’t, pay as much as possible to settle your debt quickly
- Pay on time: Always pay within the interest-free period to avoid late payment fees
- Maximise value: Use your credit card for everyday purchases to earn 1% cash back
Credit card payment options: straight or budget
When you use your credit card, you can choose between straight or budget payments.
Straight payments:
- Ideal for day-to-day spending that you plan to pay off quickly
- Pay no interest when you settle your full balance by the due date
- Get up to 55 days interest-free on all your purchases
- Make a minimum monthly payment starting from 5% of your outstanding balance
Budget payments:
- Ideal for paying bigger expenses over a longer period
- Spread your repayments over up to 48 months
- Pick a repayment term that suits your budget, with fixed monthly instalments
- You’ll pay interest until the full balance is paid off
How to manage credit card debt
- Know what you owe: This includes your credit card balance, how much interest you're paying and when payments are due
- Pay more than the minimum: Even a little extra reduces what you pay in interest
- Avoid new debt: Pause additional spending on your credit card until it’s paid off
- Consolidate your debt: If you’ve got several debt payments, consolidating them into a single personal loan can help you manage debt effectively
How to save money in SA
Smart spending hacks:
- Buy in bulk: Stock up on pantry staples or cleaning essentials to save more in the long run
- Plan your meals: Avoid overspending on takeaways and impulse buying by knowing what you’ll cook each week
- Buy generic: Store brand or no-name products are often more affordable
- Use a cash back credit card: Earn 1% cash back whenever you use our credit card
Cut monthly costs:
- Review your subscriptions: Cancel any subscriptions that you aren’t using, or replace them with a more affordable option
- Reduce unnecessary spending: Instead of a daily coffee run, try a weekly treat. You can still enjoy the things you love – just more mindfully
- Shop around: Compare prices on things like insurance, medical aid and mobile data regularly to make sure you’re still getting the best deal
