Create Good Saving Habits

Create good saving habits

IF YOU subtract your spending from your income, Savings are what you have left over.

Save, save, save! You can then increase your income by investing and growing your savings. Now is a good time to kick some bad habits. Below are practical, sound habits to help you get back on track with your retirement road map and feel more in control of your financial situation. Good luck!

Live Economically

  • Don’t buy things that you don’t need and don’t try and keep up with your friends and neighbours.
  • Everybody’s needs are different, so live according to your own needs.

Saving is a mindset

  • Save water, electricity and, most importantly, money. Don’t waste anything of value – recycle, pass on old clothes, swap children’s toys with other parents instead of buying new ones and convert things you no longer use into money by selling them.

Teach your children to save

  • Children need to know about the household budget.
  • Teach them to work for their pocket money.
  • Help them learn that making a financial decision is about weighing up the value of one thing against another and choosing the best.

Look after the things THAT you have

  • Take pride in what you have worked hard for.
  • Respect your own efforts and feel good about what you have achieved.

Don’t make excuses about why you don’t save

  • Saying “I’m too young” or “I’ll save next month” or “only rich people can save” won’t get you anywhere.

Pay off your debt as fast as you can

  • Handle your credit cards and store cards with caution.
  • First pay off your debt before taking on more debt. You will save money on the interest that you pay.

Start saving early for retirement

  • Start saving consistently for your retirement years from the day you start your first job.
  • Enjoy the magic of compound interest, one of the most effective ways to grow your savings.
  • Put aside at least 15% of your income each month in a safe investment.

Use credit sparingly and carefully

  • Save the money and then buy the item, rather than buying it using credit. It’s much cheaper.
  • It’s better to spend money you have earned than to spend money you still have to make.

Shop around

  • Compare prices and benefits.
  • Question the reason for each purchase you make. Will it build your assets or is it just to show off?
  • Are there alternative products?
  • If you are unhappy with an item, return it. These days, consumers are protected.

DRAW UP A BUDGET AND STICK TO IT

  • Draw up a monthly budget so that you can keep track of your expenses. You will be able to identify expenses that you can cut back on, e.g. restaurants, fast food and buying unnecessary clothing.