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Cape Town - Your daily coffee, the odd magazine, shopping at the 24-hour convenience store – all these little things add up to a staggering amount of money every month.
While we don’t lose sight of our big expenses (who can forget the bond and the car payment?) we often have the feeling that money is disappearing into a void. It is. And you can put a stop to it.
Here’s how you can make a few extra debt repayments by becoming aware of the small amounts of money that get wasted every month.
Track the small amounts you spend. Work out how much that daily cappuccino at work costs you over a month. Easily over R300. Also check what you spend on a takeaway lunch every day. At even R50 per day, you’re looking at over R1 000 a month. (Take your own lunch to work – and make lunch for the kids too - and make your own coffee. This will not be free, but it will be a fraction of the price.)
Have a car guard fund. Car guards are a reality in South Africa. Just about everywhere you park you will have to shell out a few rand. Make sure you have small change on you always, otherwise you could end up giving a lot more than you intended to. If you give R5 instead of R2 twice a day (the going rate is higher in some places) that could work out to R180 extra per month.
Small oversights cost big money. Leaving on three lights at home, or forgetting to turn off the sprinkler or the geyser could add a few hundred rand onto your municipal bill.
Magazines and newspapers. Fine, if you read them, but many people buy these, and they remain unopened and unread. At even R20 per day, this could get to R600 per month.
Convenience stores are expensive. These are fine in a crisis, but if you find yourself going into one of these garage shops three times a week, you need to take a look at your shopping habits. Things such as toilet paper and cheese can cost double in these stores. At even R20 more per time, three times a week, it adds up to R240 per month that you have nothing to show for.
Use your bank’s ATM. It can cost you so much more withdrawing money from another bank’s ATM. And they can charge you per R100 you withdraw. Get to know where your bank’s ATMs are in your area and use them. A crisis is a crisis, but if you are paying R150 per month extra in Saswitch fees, it’s money you have absolutely nothing to show for.
Check your accounts. You could still be paying for the cellphone contract or magazine subscription or insurance policy you cancelled. Big things are easy to notice, but the R32 for ‘e-mail services’ are easy to overlook. In a year that can add up to almost R400. Also contact your bank to find out if there are packages you qualify for with lower service charges.
Give your kids a budget too. Make them plan how they are going to spend their own money. If there is open season on your wallet every day, thousands could disappear in this way.
Fill up the car. Don’t put in dribs and drabs of petrol – you end up giving a tip every single time, when you could have done it once only.
Save the small change. Take the small change out of your wallet every day and put it aside. Even R10 a day will amount to over R300 per month. You will be grateful for that in the three days before payday.
Keep track of your savings and reward yourself. Take 10% of it and spoil yourself. Take the rest and pay back extra instalments on your debts. Nothing will make you feel better than that. A naught balance on an account is the best Christmas present you can give yourself.
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