Do things differently in 2020
The year 2020 is here and perhaps so far not very unusual from all the other new years that you have had. What are you going to do a bit differently this time?
One of the most important things that you can do is to be proactive.
When you proactively manage your financials, you are given extra room to add to your savings.
It’s best to start by reviewing agreements, contracts and current providers and/or costs that you already have.
Here are five recommendations on how to get a clear picture of the contracts and your providers, and, in the process, you can make a habit of saving:
When was the last time you properly inspected your bank statements? This entails what comes in (your income) and what deductions go off. For example, your short-term savings (savings fund) or long-term investments (pension fund/annuities). Also, be aware of any unnecessary deductions. They do add up.
Cancel unused subscriptions or memberships. This will typically include things like your gym membership, magazine subscriptions or Pay-TV type of contracts/ service agreements, for example. You will be amazed by the total amount you can save by NOT having unnecessary expenses.
It is important to remember that companies are competitive and it is only fair that you find providers with the best service, best offerings and best prices.
For example, your phone/data contract, medical aid, your car and house insurance or life insurance and policies. You need to research and consider alternatives.
Pay yourself first when it comes to your hard-earned money. And as soon as you get the unnecessary payments out of the way, you can start saving for a change. You don’t have to be too hard on yourself if you start saving only a few bucks at first. Bit by bit you can add to your savings fund.
You have probably asked yourself if you can start saving without clearing debt first? There are confusing opinions about this. Rather clear excessive unsecured debt such as your credit and store cards and then pay yourself – aka add to your savings. That sounds like a sustainable and good idea.
Carla Oberholzer is debt advisor at DebtSafe