Stick to financial goals
FIVE SMART TIPS: SAVE TIME AND MONEY.
These plans allow you to select the best tools for the job.
There’s a big difference between saying “I’m going to save up R1 million” and “I’ll put aside R5 000 a month for nine years”.
The first option seems overwhelming; the other, more doable. Realistic.
Here are some approaches and tips to achieving your financial goals:
Goal 1: I’ll save more
Pay yourself first. You’re likely to save very little by placing the money you have left over at month-end into a savings plan.
Rather setup a recurring monthly payment and transfer the amount into your savings plan, before spending discretionary income.
Top tips:
Personalise your savings plans and name them after the goals you’re saving towards. When you log onto your banking app you can track your progress.
Compare bank interest rates on savings plans.
Goal 2: Cut down on spending
Go through your bank statement. Review monthly debit orders.
Do you really need all those subscriptions?
It’s possible to cut back on the cost of some debit orders.
If you’ve managed your insurance policy well, ask your insurer if they can offer you a better rate.
Review your disposable income.
Where does your money go? How can you cut back on non-essential spending?
Try renting a movie at home and making your own snacks, versus going to the movies, could save you R70.
Top tips:
Check your bank statement to see what bank fees you’re paying. Digital banking transactions are often more affordable than those involving cash or branch visits. Make full use of your bank’s app.
Goal 3: I’ll make more money
Have a side hustle. Technology makes it easier to earn additional income, eg, Airbnb lets you rent out an unused bedroom.
Top tips:
Look at what you own and see if they can earn you extra money.
Place your income from your side hustle into a savings plan. It’ll then earn interest and you’ll have additional money to grow your side hustle.
Goal 4: I’ll pay off all my debt
Store and credit cards often have higher interest rates than other credit.
Use extra money to pay off these loans first.
Consolidating your debt into a single loan with a lower interest rate can also save money.
Top tips:
Shop around to see which bank gives you a better interest rate on your loans and credit cards.
Your financial behaviour affects your credit score, which determines the interest rate you’ll pay.
Always pay accounts on time and review your credit score each year.
Place your income from your side hustle into a savings plan. It’ll then earn interest and you’ll have additional money to grow your side hustle.
Goal 5: I’ll do better with managing my finance
Use personal finance apps. Whether it’s making good use of your banking app to track spending or downloading a household budgeting app, introducing clever tools into your personal money management will likely bring bigger success than just resolving to “do better”.