Lockdown has really pushed many people in a tight corner. Some have lost their job, businesses, and others have had their salaries cut.
All of this have shown us the important of saving no matter how much you earn.
Saving money on maximum wages can be discouraging, but don’t allow it stop you from reaching your income goals. Here’s how:
1. Get and stay out of debt
Not only does accumulating debt mean that you have more in monthly payments to make each month, it means that you’re delaying financial freedom thanks to interest payments. Make it a priority to tackle to tackle your debt. It will take commitment to erase your debts, but it can lead to an easier life.
2. Draw a budget and stick to it
Unless you have a plan for your money, it can be extremely easy to spend it. With a budget you can include your savings goals. Instead of aimlessly saving what’s left each month, you can meet your saving goals through careful budgeting. Something as low as hundred rand a month can go a long way.
3. Find cheaper housing
Housing costs are usually the biggest expense a person can incur. Between rent payment, the cost of utilities, repairs, and upkeep, housing costs can drain a budget quickly. By keeping housing cost low and not buying or renting more than you can afford you’ll have more money available for savings.
4. Evaluate your car costs
A car can come with thousand of Rands of annual upkeep and maintenance each year. In addition to a car payment , you also have to contend with several other other expenses. Car insurance and repairs are just the tip of expensive iceberg. Make sure you get a car that can make your life comfortable enough for you to save.
5. Increase your income
Another way to create savings in your current situation is to increase your income. Although it is not as simple as it sounds, increasing your income is completely doable. This can be done through a side hustle. Think of a money making hobby you can do to increase your income without taking a leap from your day job.
6. Avoid buying on impulse
Many times budgets takes a hard hit and savings suffer due to unnecessary expenditures. There’s always the temptation to buy unnecessarily. Make a commitment that you’ll only buy when necessary until your savings account is built up to a comfortable level. And when you do need to buy, work to buy used if possible or do at least buy on sales.
7. Keep entertainment costs low
Eating out, hitting the bar after work , going to the cinemas for the latest movies and other entertainment purchases can add up to a big dent in your budget pretty quickly. If you want to go out , then find out if there are any free or low cost community events that you could enjoy before springing for an expensive night out,
