Great ways to save money

Making ends meet seems to become more difficult every year. What can the average person do to make his or her budget stretch further? Follow these simple yet worthwhile tips

• • Shopping. Buy non-perishable items such as detergents and toiletries in bulk every six months. Bulk buying is cheaper and you’ll save money by reducing the number of trips to the shops per year.

• • Debt. Commit to being debt free in three, six or twelve months. Start by listing all your debts together with the interest you pay on each. Pay off the debt that has the highest interest rate first and then move on to the next most expensive debt. In future, avoid all bad types of debt such as store cards, overdrafts, personal loans and credit card debt. Make a note of all your purchases so you’ll be aware of unnecessary spending that could be used towards paying off existing debt.

• • Bank charges. Make sure that you have the most cost-effective pricing package at your bank. For instance, are you sure that you’re using the best cell phone service bundle to suit your banking habits? Shop around at different banks every year to see if your bank is offering you the best deal.

• • Food. On weekends, cook bulk meals that can be frozen in meal-sized containers. This saves on takeaways and restaurant costs. Bulk shopping for food is also much cheaper than buying for single meals only.

• • Vehicles. Never buy a new car unless you travel for a living. Buying a one-year old vehicle could save you nearly 30% of the cost of a new car.

• • Insurance. Increase the excess on your insurances to reduce your premiums significantly and pay your vehicle and household insurance annually to get a discount on your premiums.

• • Stokvel. Become a member of a reputable rotating savings club (stokvel) where each member contributes a specified monthly sum to the club and gets to keep all the contributions when his or her turn in the rotation arrives.

• • Budget. Keep a realistic monthly budget. Remember to allow for gifts, car and home maintenance, interest rate hikes and petrol price increases. Personal budgeting tools can be found online and via some banks.

• • Moneybox. Get a cute moneybox in which to save the money that you would have spent on lottery tickets, cigarettes, etc.

• • Investments. Seek advice from professionals such as financial advisers or bankers when investing your money. Whenever you receive any extra money, save it – this includes bonuses, tax rebates, salary increases … even birthday presents.

Sources
www.essentials.co.za
www.moneyweb.co.za
www.savingsinstitute.co.za