Saving money is important in today’s economic climate, especially in South Africa. When you were growing up, did you save your cents in a piggy bank or under the mattress? As an adult, this may seem like a childish activity, but saving is even more important once you begin earning your own income and dealing with your own expenses. While our lives and budgets may have outgrown a little piggy bank, savings, insurance and investments should still be top of your financial priorities.
Financial awareness is key
Your parents and teachers probably taught you about saving when you were young, but the skill of saving on a bigger scale is learnt from experience once becoming an adult. Many people take financial management courses or pay for accountants to handle their affairs for them, as they are aware of the horror stories of debt and bankruptcy. Education and awareness of finances are essential to the successful adult, no matter what type of business you run or expenses you accrue.
Count your bills as well as your cents
Counting the cents you save at the grocery store may be a habit for you, but are you aware of other situations where you might be overspending? Be wary of lay-byes and monthly instalment payment options; you may think you’re saving by paying small amounts at a time, but the interest you accumulate over the months may be more than you bargained for. Many people are tempted by flashy sale signs and discount prices, but pause and think about whether you would want the item if it wasn’t half-price. Don’t fall into to the marketing trap of stores that aim to turn a profit from your unawareness – plan your spending wisely.
Another huge mistake in financial planning is not to have any money spare. When you are faced with unexpected expenses, such as a hospital bill for a sudden accident, having insurance or a savings account that can cover these expenses will help keep you debt-free. When budgeting, always plan for the unexpected. Contact One Debt for legal advice and debt counselling if you want to optimise your savings.