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We all claim we do not have the money to save, but seldom do we look at how much money we are wasting day to day. By being more mindful of how we spend our money, we can turn that wastage into real long-term wealth.
The office vending machine
Have you calculated how much you spend on the vending machine at the office? Start now by logging your daily expenditure. If you are spending just R20 a day, that is costing you about R440 a month. If you invested that money in a tax-free savings account, which delivered the long-term average return of the stock market (around 12% a year), you would have R435 000 in 20 years – along with a narrower waistline and healthier heart.
Speeding fines
For every 10km/h you exceed the speed limit, you could receive a fine of R250. By being more vigilant about your speed, you can take the R250 saved each month and add it to your tax-free savings account. Combine this with your vending machine savings and in 20 years’ time you would have a nest egg of R682 000.
DStv
Analyse how much time you are watching TV. If you are stuck in front of the set every evening and weekend, maybe it is time to cut back and read a book, or get some exercise. If you find you are hardly ever watching TV, you are already wasting money. If you migrated from DStv Premium to DStv Extra, you would have saved R274 a month. Add this to the other savings in your tax-free savings account and you would have accumulated R954 000 in 20 years. That is nearly R1 million you are currently wasting.
Smoking
If you smoke a pack of cigarettes a day, you are spending around R1 113 a month on the habit. If you quit smoking and pay that amount into your tax-free savings account, along with your other savings, you would have a massive R2 million saved within 20 years.
Procrastination
The biggest money-waster is waiting to save. If you started today by cutting back on the vending machine, received fewer traffic fines, reduced your DStv package and gave up smoking, you would have R2 million within 20 years. If you procrastinated, and only started in five years’ time, you would only have R1 million. Your procrastination just cost you R1 million.
