Money-saving tips that work for you can be difficult to find. In a socio-economic climate like South Africa, where the household savings rate is as low as 30%, it can seem impossible to have any money left to save. Most determinants of the saving rate are interests rates and high levels of debt.
Gerald Mwandiambira, acting chief executive of the South African Saving Institute told IOL News that 70% of South Africans salaries go to debt. This is a sad reality but to reach your savings goals try to adapt them to your income and find ways that can be valuable to you,
Simple game-changing saving tips
According to Discovery, the key to starting a savings journey is by shifting your mindset. This means being honest with yourself and finding realistic goals that align with your income.
Choosing to start saving for retirement at a young age can feel impossible but changing that mindset to gunning for a short-term goal can also help build those saving skills.
Here are saving tips that will help make those goals a reality.
Create a budget
To get a clear view of what your savings could potentially look like, start a budgeting plan that will help allocate your money accordingly. It will help you track your expenses and spending habits which will help you point out where money can be saved.
Save with a Purpose
Saving with no goal will not motivate you to continue doing it. But if you are saving towards something as big as a deposit for a house or something as small as a pair of shoes reaching those goals will inspire you to even expand on your goals.
Automize your savings
Finding a bank that automatically takes out a certain amount of money into your savings account every month will help you stay on track with your savings. Treating your savings like your bills will reduce the desire to impulsively purchase stuff.
Monitor your savings
If you keep track of your savings, you will be able to access any mistakes and changes that can be implemented. African bank says making small adjustments to your spending habits can help you eventually reach your long-term goals.