Although saving money is not easy, it is doable.
Regardless of how much you earn, it is possible to save. However, note that discipline goes a long way when it comes to taking charge of your finances. After making the decision to change your financial situation, stick to your decision.
Let’s look at four smart and doable saving tips for low-income earners.
Start with a little
When it comes to saving, no amount is ever too little, even if it’s just R50 or R100 a month. If you allow the money to grow, it will eventually amount to much more as it will have accumulated over time.
Cut off wants and stick to needs
Experts say 50 percent of your income should go towards paying for your needs such as accommodation, then 20 percent towards savings, and 30 percent towards wants.
However, if you are not in a position to save at least 20% of your income, rather cut down on wants.
Things such as takeaways, paying for car wash etc., are not needs, but can take up a lot of your money.
Look for ways you can save money by doing somethings yourself instead of paying for the service.
Take that money and put it away in your savings account. By the end of the year, you might have a fair chunk saved.
Avoid temptation
You can save money by avoiding going to places where you will be tempted to spend.
For instance, ordering groceries and clothes online and then having them delivered to your home will save you from the temptation of being at the mall or shopping complex, and seeing other things that might interest you.
Also, avoid regularly going out with friends if you know you might spend more money than you have budgeted for.
Save any extra money you receive
Put any extra money you receive into your savings account; whether it’s a salary increase, a bonus, or a gift in the form of money from family or friends.
Alternatively, use the money to pay off some of your debt and once those debts are fully paid off, direct the money into your savings account.