You may have neglected your savings, but if one of your resolutions is to create a pot for retirement, school fees or a rainy day, then now is a good time to start.
If you are young and feel like retirement is a long way off or if you have other priorities such as paying school fees and your home loan, you may feel that saving can be delayed. But, there is no such thing as starting too early.
Savings are important and to help you get the bag growing, Sonja du Toit, a financial planner, says the sooner you start saving, the better as you can benefit from compound interest. This is interest added onto the interest on your savings when your money starts to grow. ‘The effect of compound interest is so amazing that Albert Einstein referred to it as the ‘eighth wonder of the world’,’ she says.
Ways to save
Find exclusive deals
If finding a bargain is what you’re good at, use this skill to your advantage and find deals on everything. If you find a better deal elsewhere, switch!
Get your hair done for free
Some beauty schools train their students by getting members of the public to come in and have their hair done for free. So, why not take advantage of what these beauty schools have to offer?
Take care of yourself
Get enough sleep, take the right vitamins and do exercises you enjoy. Being healthy could save you money on your medical bills.
Save on internet costs
Make use of free Wi-Fi at restaurants or shopping malls. You can also switch to the ‘lite’ version of some apps such as Facebook and WhatsApp to reduce mobile data consumption.
Adopt the ‘BYO’ philosophy
Have a bring your own (BYO) braai with friends instead of going out, particularly during the festive season.
Prices go up at this time, so it’s cheaper to dine at home. However, if you do go to a restaurant, take your own wine. Some restaurants allow this and charge a corkage fee, which is cheaper than buying drinks.
By Angelique Ruzicka
Also see: Start budgeting better
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