Top 5 ways to help you save money

1. Set a monthly budget Create a budget that will prevent you from spending money you don’t have, helping you to stick to your overall financial plan and reach your goals. Allocate amounts for each spending category – from eating out to paying off your bond – and make sure the sum of your budgeted categories doesn’t exceed your monthly income. Find out about creating a basic budget.

2. Be a smart shopper Make a list of the things you need and go to the shops alone to avoid peer pressure. Evaluate the price of each item by the amount of times you’ll use it (or hours spent enjoying it). Decide which items or experiences truly make you happy and leave out those that are unnecessary.

3. Take a money minute to evaluate Put aside a few minutes every morning and have a look at your balances and financial transactions to evaluate where you are financially. If your bank account is looking low that day, it might prevent you from making an impulse purchase you can’t afford.

4. Bring on the 50/20/30 plan When you receive your monthly income, adopt the 50/20/30 rule. Budget 50% for necessities (rent, bond, groceries and so on), 20% for your savings (including retirement funds) and 30% for your lifestyle expenses (entertainment, clothes, holidays and so on). Knowing you have a budget within which to play – after you’ve paid your bills and put money aside – will give you a certain amount of financial freedom.

5. Pay off your debts timeously Don’t waste your hard-earned money paying interest on your debts. To get in the swing of repayments, start by paying back some of your smaller debts. Debts with higher interest rates will rack up the bill fastest, so tackle those first.

Source: Budget Insurance