HOW TO DEVELOP A MONEY-WISE MINDSET

A person who has made it a priority to save is someone who plans ahead, knows their weaknesses and is cost-conscious, Derick Ferreira, the head of product management at Old Mutual, says.

Plan ahead. A person with a planning mindset goes shopping with a list that’s based on a meal plan. That way, you plan to eat in, rather than eat out and you avoid buying last-minute take-aways for dinner and wasteful expenditure from buying without a meal plan in mind, he says. “Buy what you need and only what you need. Be disciplined when you shop and committed to your budget. Don’t spend more than you have allocated to spend.”

Know your weaknesses. If you enjoy indulging your children, or find it hard to say no to them, don’t take them shopping with you. And if you enjoy indulging yourself, don’t shop on an empty stomach, he says. “Or you might be a sucker for a special deal like those ‘buythree-get-one-free’. It may well be a saving to buy in bulk, but only if you can afford it. Remember, you need only one, not three.” It may seem trivial, but the point is that all those little specials and treats for yourself or your children add up – and you could be allocating that money towards an investment to fund your children’s education or your retirement.

Be cost-conscious. Check your bank statements and tally up all your costs and charges. Consider if you could be on a more cost-effective account. Check all your debit orders to make sure they are all legit. If you have both a landline and a cellphone, consider if you need both. When you become due for an upgrade on your cellphone, consider forgoing the upgrade if it means buying another top-of-the-range phone. Consider what you could save by not incurring that expense.