Topics, Tips & Tools / Expert Insights

Six Simple Ways to Save Money

17 September 2013

Most of us find it incredibly difficult to save money, yet we know we should make more of an effort to do so.

We often start thinking about changing our savings habits at new year, although saving – and good financial discipline – should be a year round affair. That said, there is a direct link between money and new year resolutions as the whole concept of new year goal setting began in the ancient nation of Babylon where people would use the dawn of a new year to pay off debts and return borrowed goods.

In any event, regardless of whether you were living in 2000BC (the mid-point of the Babylonian dynasty) or 2000AD, the probability is that you’d find saving to be a daunting task. We hope the following tips will make it a little bit easier for you to put some of your hard earned cash aside for the proverbial rainy day:

1. Kick a bad habit and put it in a jar – If you have decided to quit smoking then take the money you would have normally spent and save it in cash.

2. Write it all down – write a budget. If you struggle to stick to this then start writing down every little thing you purchase. This can make you aware of how even the little things add up. Use our budget planner to get started.

3. Cook more – home cooked meals are generally more nutritious and much cheaper than take-away food. And cooking at home really doesn’t mean slaving in the kitchen for hours. While you’re at it, take a packed lunch to work as well. Spending R30 a day in the work cafeteria adds up to R600 a month – making your own lunch could save you half that money.

4. Declutter – most of us have loads of things lying around that we never use, so do a bit of spring cleaning and sell the things you don’t need. You can throw a Garage sale or sell them on one of the online auction sites like Gumtree or eBay. Just be sure to put the cash you make into a savings account!

5. Bargain hunt – saving money doesn’t mean you have to cut back on the fun. If you want to go out for a meal or take a short break, be sure to look at websites like Groupon that offer a huge range of deals at great discounts. Watch out though as subscribing to their daily newsletter will mean your inbox is flooded with lots of irresistible offers. If you think temptation might get the better of you, remember to unsubscribe once you have bought what you need.

6. Take care of expensive debt – if you have lots of store cards and loan facilities, it may make sense for you to take out a personal loan to consolidate your debt. Grouping some of your short-term debts into a medium-term repayment plan helps improve your cashflow. This article explains how consolidation loans work.

Remember, when it comes to money, a little discipline goes a long way. At DirectAxis we’re here to help you understand the world of finance and help you manage your money effectively.