How to Save Money: 5 Simple Hacks
Learning how to save money is not easy; especially with the current climate of rising prices and decreasing incomes and salaries. Additionally, South Africans are not the best at saving culture, but with the current situation, they have no choice but to adjust and tighten those purse strings.
At Olmen Financial Services we offer an alternative micro-lending finance avenue for qualifying individuals. Nevertheless, lending of any kind is not ideal or financially savvy. We understand this at Olmen Financial Services and want to give South Africans these 5 simple hacks that could save you money.
Save Money by Reducing Debt
It’s almost impossible to start saving if you’re still paying off interest on debt. Therefore, when it comes to saving money, you must find a way to reduce it or entirely get rid of debt. There are a few avenues which you can consider when removing your debt, either debt consolidation or joining a debt review programme.
Another alternative would be to focus on eliminating your debt on your own. However, this last option will require a lot of discipline and extreme lifestyle changes.
Save Money by Budgeting
Create that budget spreadsheet, jot down the essentials, and make some money for unexpected emergencies while eliminating or at least reducing unnecessary expenses. Additionally, invest time into researching cheaper alternatives to your current insurance for lower premiums and internet connectivity providers.
Plan & Set Goals
“Those that fail to plan, plan to fail” is not just something your parents drilled into you every time they had to drive you to school because you missed the bus. Furthermore, it’s very important to plan and set saving goals for both practicality and motivation.
Therefore, a good place to start would be that budgeting spreadsheet, followed by short-term (1-3 years) and long-term (4+ years) financial goals for what you’d like to achieve with your savings and how much you would like to have saved by a certain period. I guess mom and dad were really onto something.
Adjust Your Lifestyle Choices
This one hits home because there is nothing harder than adjusting your way of life, especially if it’s become a ritual for you. However, changes need to be done but the type that won’t completely disrupt your way of life. A great start would be cancelling a few of your subscription-based services for streaming or gaming.
Additionally, carpooling to work instead of driving will save you tons of money on petrol. Finally, you can spare a few minutes of sleep in the morning and carry a packed lunch to work instead of buying. These are just a few lifestyle adjustments that won’t completely derail your life but will still help save money.
Immerse Yourself Into ‘saving culture’.
There are several ways to save money, but getting into that habit will require more than just giving up a few luxuries. It is a literal cultural shift and takes a lot of discipline. Nevertheless, it is not impossible. As South Africans, we don’t have the best track record when it comes to saving.
As a result, South Africa has one of the worst saving rates in the world; with the majority of the country’s working-class spending 80% of their salary within the first five days of receiving it. Research states most South Africans fall into the ‘savings trap’ because most formal saving offerings from traditional financial and investment institutions are complex and intimidating.
Therefore, it’s very important to do adequate research into how you can not only save but also grow your savings, through investments, money markets and financial schemes.
