Save Money In 2017
Category Advice
During turbulent economic and political times, it is imperative for South Africans to keep their finances tightly in check. There are numerous ways to cut back on expenditure, some of which are small changes which have a monumental impact on saving. By spending less money on small items, consumers can find themselves with extra money at the end of the month, making the long wait until payday a lot more pleasant. Save money each month and pay off your mortgage faster with the following tips:
1. Start With Debt
If you're trying to save money through budgeting but still paying off a cumbersome debt, start with the debt. It’s important to create a strategy to pay off all of your debt over a shorter span of time, rather than paying only the minimum monthly installment. Once you're free from paying interest on your debt, that money can easily be put into savings. Chose the credit card or loan with the lowest interest rate and pay off all your different debts with that particular loan or credit card. |
2. Utility Bills
Turning off lights during the day and at night when you are asleep can save you between 3-5 percent in energy costs. Additionally switching your geyser off during summer can deliver up to 30 percent savings.
3.Spend Money On Long-Term Savings
Sometimes you need to spend money in order to save money in the long term. Some of the best ways to accomplish this is through installing long term investments, such as: solar heating and insulation. Solar heating and thermal insulation may be costly to install initially, however the money that you save on energy costs equates to the investments paying off themselves within 3 years. More so, these investments add value to your home, ensuring that your home is worth more money when you sell it.
4. Pay Your Savings Account First
Set up an automated scheduled payment from your cheque account into your savings account each month straight after payday. This will prevent you from spending your savings on unnecessary items throughout the month and allow you to save for your future instead.
5. Cut Back On Unnecessary Items
An obvious money-saving tip is finding everyday savings such as quitting smoking and buying lunch everyday. If buying lunch everyday costs R50, but bringing lunch from home costs only R10 over the course of a year, you can create a R10 000 savings account.
By following the above savings tips, consumers can cut back on unnecessary expenditure, which allows for more room to save towards the future or even pay off their mortgage faster. Paying off your mortgage quickly can be a massive financial relief for the future as it allows for more money to go towards pensions funds and important savings accounts.
Author: Dormehl Property Group
