Follow these savvy tips for financial peace of mind
Not too sure how to get ahead of the day-to-day money game? These must-dos will help you to gain financial ground and stay in control.
1. BUNDLE YOUR BILLS
Keep service providers few and the savings high. If you bundle as many utilities as possible with the same service providers, you will see bigger savings. For example, taking phone insurance with your phone provider is far more expensive than bundling it to your package with your existing insurance company. Many insurance companies will offer all kinds of value-added services that cut costs for you elsewhere, such as reduced rates on tracking devices.
2. SHOP SMART
This is a lot easier to do with a family. Buying non-perishables in bulk from mass distributors means that you will enjoy big, long-term savings. However, when it comes to fresh produce, bulk buying isn’t always best, unless you know everything is going to be eaten or frozen correctly. Use loyalty cards and savings, and keep up to date with sale days. Also consider online shopping, which will cut back on time and fuel.
3. DRIVE LIKE A FINANCIAL PRO
Carpool when you can, or use your own energy to get you where you need to go. Walking or cycling is a double win, as you save money and get your daily exercise in. Or use public transport – you’ll be able to spend the free time reading or listening to audio books.
4. MAINTAIN MAINTENANCE
It may seem like a grudge purchase when there are other pressing things such as school fees and items to buy for the children, but prevention really is more affordable than the cure. For car and household maintenance, avoid big repairs by paying for the small ones that crop up from time to time. Keep your car services up to date, and make home repairs a priority.
5. LIVE A HEALTHY LIFESTYLE
Staying healthy is one of the best ways to save money. But if you find yourself in need of serious medical care, make sure that you have chosen the correct medical plan for you and your family to avoid suffering the financial burden of doctors’ and hospital bills. However, it’s as easy to overspend as it is to underspend, so you have to take your lifestyle into consideration before you decide to sign up for a programme.
6. HAVE AN UMBRELLA
Most financial gurus will tell you that your ‘rainy-day’ fund is usually three times your monthly income, but anyone running a household and working an average nine-to- five will agree this is no small feat. However, your emergency fund doesn’t have to be built up all at once. If you open a 32-day notice account or unit trust with a monthly debit order of R200–R500, you will build something substantial over time.
7. CHECK YOUR SERVICE FEES
What are you forking out on bank charges, insurance and other service fees? Make a point of familiarising yourself with how much you’re being charged and for what. Also be sure that you really need everything you are paying for – are you paying for
20 GB data, but only using five? Are you being billed for paper statements? If so, make the switch to electronic ones.
8. BE CREDIT SAVVY
There is no denying that the credit card has helped many people out of a pickle, and that some goods require you pay upfront. When it comes to being credit clever, three main rules apply: Don’t spend more than you can comfortably repay every month, make repayments in full each month and get help with repayments before you get blacklisted.
9. MODERATION IS EVERYTHING
Cut down – but not on everything. Smart spending doesn’t mean you have to say goodbye to all the fun, but you have to admit that it’s easy to overlook the amount we spend at restaurants and on other treats over the course of a month. Keeping track of where your money goes will help you craft an economically effective plan.
Words by Emily Bisset
Photography: Unsplash
