Baby girl are you saving right? Are you able to travel every once in a while? Are you able to enjoy December with no stress? Are you able to send your family that large sum of cash when they ask for your financial assistance? If you were financially comfortable in 2019, big ups to you and keep up the good work. However, if 2019 wasn’t your best year when it came to saving, it’s okay, we are in a new year and a new decade. There are plenty of opportunities and ways to get it right. But this obviously means that it’s time to try something different. Here are a few tips on how to save and stay out of debt. We all have our strengths and weaknesses, and saving is not a common strength among people, especially when we are in our youth and prime and constantly in a state of desire to live our best lives. But, nothing great comes without compromising, and this is rather a great challenge towards obtaining financial freedom, breaking a few negatives in our lives. So, let’s do this together!
It is imperative that we get rid of old debt and stay away from creating new ones. So inevitably, it would be required of you to plan on how you’ll be settling that clothing account, fees account, cellphone bill, furniture account etc. The unfortunate thing about these accounts is the interest, that is forever mounting up, making it seem almost impossible to settle. Some companies charge an interest fee of up to 20.50%, imagine how crazy that sounds, but this is the reality that some people are currently facing. So, depending on your salary you can start slow by paying as little as R100, every small amount makes a difference, however, if you have a great salary, make it your mission to pay off as much as you can e.g. R500 or R1000. No amount of debt, no matter how little it may be, will result in a stress-free life. By settling your debt, at least you will be able to concentrate on more important things.
How you can save
- Get your coins sis!!! Yes, literally, save every single coin you have in your wallet or lying around. All those R1s, R2s and R5s can make the greatest difference. A suggestion is purchasing a large jar or an empty 2l Cold drink bottle and cut out a slot. You’ll slowly start depositing that into the jar. Do that the whole year. But be disciplined enough never to take out from that jar, no matter the circumstance.
- You can also save by doing the ‘52-Week Challenge’. Yes, we are approaching February already; however, you can cover up for January by adding an extra R100. You’ll see the table below which gives you a breakdown on how it’s done. By the end of the year, it you are consistent’ you could’ve saved up to R13 880, that sounds like a trip to Zanzibar.
- Another way of saving is to come up with a set plan. Say for example, you can set a certain amount for every month and commit to putting that money into a savings or a 32-Day Notice account – depending on which bank you bank with. This will require discipline for that day when you don’t have money or when you are craving Mc Donald’s, girl don’t do it, please don’t hurt yourself, the reward is far greater. Slipping up may result in the worst ripple effect. Rather opt for the 32-day notice account, this type of account is basically a ‘safe’ and if you need to take out ‘emergency cash’ you will need to pay a penalty.
Cut down on unnecessary groceries and expenses e.g. buying tons and tons of snacks and going out often can be very expensive. Junk food and eating out should only be bought when one has extra cash that has been budgeted for. It will be wise to concentrate on necessities. The small changes will make a huge difference in the long run.