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12 tricks to start saving

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Cape Town - Saving is really difficult, which is why one should see it as a reward in itself. Having that money means in a crisis you can foot your own bill, and won’t have to ask anyone for help. What better reward could there be?

One of the biggest tricks about saving money successfully, is to keep it separate from your running accounts. Because running accounts are probably called that, because the money runs in and it runs out again just as quickly.

It’s just a human thing: if it’s in your account, you’re going to spend it. And what’s more, you’re probably going to spend it on unmemorable things such as petrol and the rates account. This money needs to be ring-fenced: when kept in another place/account, it feels more special and you might just think twice before touching it.

Saving is tough, and little in the world around us encourages us to do it. The vast majority of the messages we get from the world of advertising appeal to our need for instant gratification. In short, that means “I want it, and I want it now”.

Also, the cost of living is enormously high, and many people are earning low salaries, or are unemployed.

It’s tough to save under those circumstances, but if you do have a job and a reasonable income, you could be wasting lots of money without being aware of it.

It is only when we accept that our long-term future and financial security are actually more important right now than impressing the neighbours, or indulging a sudden whim, that we might get it together to start saving some money for when we might really need it. It’s going to take some discipline, but the rewards will be fantastic. Imagine what it would be like to no longer have any sleepless nights about money.

Here are a few unusual ways of making that start to having some savings:

1. Change banks. Some banks have great packages for new customers that will reduce your fees and bank charges. It’s a hassle, but it could save you thousands. Take the money and put it either in a separate low-cost account, or if you feel secure enough, keep it at home. Large amounts of cash are probably safer in the bank, though. Burglars know every possible hiding place.

2. Wait a month before you buy anything big. Much of our buying is on impulse, even when it comes to big items. If you have your heart set on buying an expensive item, tell yourself you can have it if you still want it after 30 days. Quite often, you will find your needs have changed, or you find a better, or cheaper, deal. Take the money you have saved, and put it away.

3. Cancel memberships you don’t use. Haven’t been to the gym since last September? Either start going again, or cancel your membership. And while you are about it, check the debit orders going off your account. Even a small amount deducted in error every month can add up to a lot of money over a period of time. Sign a debit order to siphon these amounts into a savings account of some kind. You are already used to living without that money. You may as well save it for your own benefit.

4. Pack your own lunches. Takeaways are expensive, they are high in fat and kilojoules, and low in nutritional value. Make your own healthy lunches, and calculate the difference in cost. Put that money away every day.

5. Clear out the garage/attic. It’s probably stuffed with stuff you will never use again. But someone else might pay you good money for it if you advertise it on OLX or Gumtree. Clear out rooms filled with clutter – you might even be able to rent out the space once it’s empty. A clear-out or a garage sale is a great way to kickstart your savings plan.

6. Use your company benefits. If they offer a housing allowance, a car allowance, free courses, access to certain events – use them. If you’re saving even R500 because of the company benefits you’re using, within a year or two it will be quite a substantial sum.

7. Empty the small change out of your wallet every day. It will be a few rand every day. Put it in a jar (not where your kids can see it!) and you will be surprised at how much is in there at the end of the month.

8. Hide your credit cards. Keep them in a safe place at home. These cards are not for everyday use, as it’s simply too easy to use them to spend money we don’t have. Rewards yourself with a fixed amount if you can keep your credit card spending to a certain minimum – you will have saved a lot of interest anyway.

9. Learn to cook. And when you do, you will also learn how to make tasty and inexpensive meals. Cook in bulk and freeze the food. In that way, you’ll be less tempted in future to eat out or get takeaways if you have no time to cook. You can just pop something into the microwave. You can even invite friends over. What’s more, they will invite you back, and right there between you and your partner, you will have saved the cost of four restaurant dinners (obviously minus the cost of the food you prepared). Put the money away.

10. Start swopping skills. If your neighbor can do your taxes, and you can help him repair his car, you have both saved money. Find out which skills exist in your circle of friends, and exchange them. Just make sure that the exchange is fair – three evenings of babysitting do not equal replacing a washer in the tap.

11. Cut down on smoking and drinking. This will be good for your health, reduce your medical bills, and cut down on your daily expenses. Regular smoking and drinking can be extraordinarily expensive. A heavy smoker could save enough by quitting to afford an overseas trip within a year.

12. Don’t go to the shops. Or when you do, have a list and stick to it. Big retail companies have squadrons of staff whose job it is to make you buy things you don’t really need. Shop displays and even how things are stacked on the shelves are aimed at trapping unwary shoppers. Try and avoid the shops as far as you can, as impulse buying of any kind wreaks havoc with any carefully laid-out budget. Reward yourself with a movie ticket if you manage to stay out of the shops for a certain period of time.

Consider yourself a savings hero? Or just have something on your mind? Add your voice to our Savings Issue:

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