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If putting more money in the bank is a top priority for you in the new year, you may need help to overcome the odds. Once again, here are several tips to get started and make your saving goals a success this year. According to a survey, 52 percent of survey respondents list “saving more” as their top financial resolution for 2013, up from 46 percent in 2012. But survey respondents admit that sticking to financial goals is harder than other popular resolutions like quitting smoking, exercising more, and finding a new job. Fewer than half of those surveyed managed to accomplish more than 80 percent of their financial goals for 2012.
Break your goal into easy steps Breaking down goals into manageable bites makes big numbers less intimidating. Don’t try to save R50 000 for the year. Instead, save R1000 a week. Yes, the goals are the same, but which sounds easier? Make saving like paying a bill. Additions to your savings account should be like any other regular bill you pay. The only difference is the payee. Include your savings in your budget, and set up an internet deposit into your savings account when you’re sitting down to pay the bills. To make the process easier, set up automatic deposits into your savings account. Schedule transfers on your payday and move the money before you can spend it. Start tracking expenses Tracking your expenses isn’t just important for budgeting, it’s crucial to see where your money is going and how you can save. For example, maybe you think you spend R400 a month eating out. Would it be a big surprise if you tracked your expenses and found you spend double that? There’s no way of knowing what you spend until you’re tracking every cent. Use a free budgeting app like ExpenZa to automate the process. Find the money Creating a goal to save more is a start, but the real challenge is finding the money within your budget to make it happen. After you track your expenses and know where your money’s going, you’re in position to spend less. One way to do that is simple – cut back on discretionary spending like eating out. But try to avoid a “Rand diet.” Diets are about deprivation, which is why they’re so hard to stick to. When you’re trying to squeeze extra money from your budget, first try to gain without pain by having the same quality of life for less. For example, if you eat out using a discount coupon, that’s gain without pain. If you reduce your insurance bill by raising your excess, you still have insurance; you’re just paying less for it. Wherever you’re spending money now, you can *Pay Less for Car Insurance Don’t discount the little stuff, either, since saving *Find ways to save on food Tracking your goals is important for two reasons: to check up on your progress and to stay focused. Using an app like ExpenZa or financial software will put your goal in front of you every time you log on, as well as the progress you’re making toward reaching it. Remember: Out of sight is out of mind. Keep your goal in sight, and remind yourself why it’s important to achieve it. Reward yourself Saving money sometimes requires sacrifice, but don’t forget to give yourself a break. Treat yourself to a R15 latte, or whatever you consider a guilty pleasure. You’ve earned it! |
