Most of you know that July is the National Savings Month in South Africa, most South Africans do not have any savings for retirement even on a rainy day. I was one of those people who lived without a budget and on paycheck to paycheck because I relied on my credit card to cover me until the next pay day.
Something had to change in my life because I was tired of paying installments every month to nearly 10 accounts. I closed most of the consumer debt accounts and remained with my credit card.
Even though I had the credit card only I still misused it and could not pay it off at month end. It is only this year that I started to aggressively pay it off and I am nearly done.
Here are some tips to help you on your saving journey.
1. Remember that personal finance is personal, don’t compare yourself with anyone. You both earn different incomes.
2. Do look rich to please family and friends, it is okay to say no. Believe me, some will not understand but focus on your financial goals.
3. Utilize savings challenges I mean there is a lot of variety available online for you to choose from and you can begin with saving 10 cents every day to get into the habit of saving.
4. Pay off debt that needs to go, remember this if you cannot pay it off when you get paid then save for it until you can afford to buy it.
5. Learn as much as people on personal finance twerk it to suit your life and make it make sense for you and your income all the time. It is your personal journey.
6. Look into sinking funds they really saved my life. Save for things that you know are coming like fees, stationery, birthdays , vacations, maintenance.
7. Save for retirement most of the companies in South Africa don’t provide things like retirement annuity and provident funds. If you are working for such a company, it is your responsibility to take charge of your financial future and start saving for retirement.
8. Lastly, learn to budget and know where your money is going, this will help you on your savings journey.
I hope these tips help someone to start their journey on savings. If you have more tips to share with us, please feel free to leave a comment below.
Until next time.