January is traditionally a difficult time for many families after the December rush and the holidays.
On the back of what has been anything but a normal past 18 months with many consumers still extremely hard hit by the effects of Covid-19, the start of 2022 presents an opportunity to get your finances in order and use the new year to do things differently.
“The best parting gift you can give yourself this year is a savings account – in fact, it could be your gift to your family this year.”
Many people may say at this point “but how can I save money when I don’t have extra money?”
However, it is possible to save on any income.
7 ways to become a big saver on a small budget:
- Set yourself some savings goals. What do you want to save money for? How soon do you want to achieve this goal? It’s important to set realistic goals or you might get frustrated and give up too soon.
- Open a high interest savings account and make a small deposit, like R100. When you see your money start to grow, you’ll be inspired to increase the amount you save each month as soon as you can.
- Automate your savings. Set up a debit order for an amount to be transferred to your savings account each month. You won’t even notice it’s gone.
- Eliminate unnecessary expenses. Be blunt when going through your bank statement and get rid of things you don’t need or at least downgrade where you can to cheaper options.
- Join stokvel and other social media savings initiatives. Not only will you be informed of the best deals, but you will also learn how to save money from other members. Everyone works together towards a common goal – to save – and shares valuable tips and tricks.
- Make savings an integral part of your lifestyle; even involve children. With everyone looking for a bargain and seeing who can save the most, you’ll soon be well on your way to reaching your savings goals.
- Take advice from the right people. As with any new business, if you’re saving for the first time, you want to be sure that your hard-earned money is working hard for you in the bank. Do your homework to find the best interest rate from a reputable bank. Beware of quick savings schemes or people who have an “amazing” investment opportunity for you.
“Don’t let another year go by regretting your financial situation. Set a goal to achieve your dreams, start saving money in January, and by the end of 2022 you’ll be in a much stronger position financially.
“It’s important to tie your savings efforts to your savings goals. Savers have a long-term vision and plan of what they want to achieve instead of just taking it day by day,” concludes Sbusiso Kumalo, Marketing Director at African Bank.