Life Style

5 money saving tips

Money, if not managed well, can make you end up in debt or struggling to make a living. Here are some ways to save up and grow your money at the same time so that you do not find yourself in a fix.

1 You need to start saving early
If you start at a tender age, say at 25, to save 10 dollars a month you will have millions in retirement capital! The magic wand here is compound interest. Essentially your money grows rapidly when you earn interest on your interest for a long period of time. There are massive benefits in early investment so start saving now.

2 Prioritise saving
You must pay yourself first rather than waiting to see what is left at the end of the month. If you fail to consciously channel your spending in the directions you choose, it will continue to flow in other directions. The best way to make a commitment is to sign a debit order for a certain monthly amount

3 Clear you debts
If you can pay off your credit card or out in a little extra into your bond every month, you will find that you pay significantly less interest. You can save hundreds of thousands of rands in the long term. Some debts are not bad such as paying your bond, but people often fall into the debt trap by buying unnecessary items such as clothes and indulging in entertainment

4 Invest
Most people are comfortable with saving their money but going when investing is suggested to them. This conservative attitude will not make your money grow. It is not enough to just save your money, you need to invest it in such a way that it will grow.

5 Have a retirement plan
The reality is that most people will have to provide for themselves 20-30 years after retirement. You need to start planning for it now

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