Three golden rules of saving

By Drum Digital
25 July 2014

You would be amazed at how small changes can help free up extra money for you to save towards your goals.

Saving is an effort -  daily expenses and overspending can easily chip away at the money you hoped to save.

Here are some tips on avoiding the "next month" trap when trying to save:

Rule 1: Don’t snub the small amounts

A  key difference between savers and non-savers is that savers believe in the value of saving small amounts.

Deciding to not buy a cup of coffee or colddrink at work every day could free up R15 every working day.

That doesn’t seem like much, until you realise that it adds up to R300 a month.

Rule 2:  Hands off

Aim to keep your savings going for as long as possible so that your money will start working for you.

You can use online calculators to calculate the future benefits of what you’ll earn from this compound interest to keep you motivated.

Think of  your savings as money you don't have, don't consider it when budgeting for anything.

Rule 3:  Pay yourself first

Very often saving is something that people do with money that is left over after all expenses have been paid - big mistake.

Automating savings will also help in disciplining yourself to save, enabling you to reach your savings goals.

If you stick to these three rules throughout your savings journey, they will prove to be worth their weight to you in gold.

- FNB

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