Master the art of saving

2010-01-23 14:11

THIS year’s first pay cheque for those South Africans who are

­salaried should be used as a foundation to correct the mistakes of the past

year that led to a difficult January.

Financial advisers say building the foundation starts with creating

an accurate savings plan and ­adhering to it.

Paul Slot, a director of ­Octogen, a company that offers debt

counselling and financial advice, says this is extremely important because

consumers face an additional financial burden from the expected electricity

price increases over the next few years.

Many people face a difficult January because the costs associated

with the reopening of schools cause a spike in their ­regular expenditure.

Slot says people should consider part-time studies which are

generally cheaper than full-time education.

Financial advisers suggest that people do the following this month

to set themselves up for better financial health:

  • Review your lifestyle;

  • Set up a savings plan, which is

    essential in preparing for those unexpected events in life;

  • Separate expenses into essential and

    non-essential categories in order to see which expenses you can survive


  • Keep your fuel or transport costs down

    by avoiding multiple trips to the store. Plan on paper and prepare your shopping

    list ­beforehand;

  •  Upon receiving your salary advice,

    draw an accurate list of expenses and income. Do this on two columns on the same


  •  Compare your totals and if your

    expenditure exceeds your debt, re-evaluate your spending. You cannot create debt

    without enough income to service it;

  •  Budget to save a minimum amount every

    month and try not to withdraw that money; and

  •  Always try to settle your smaller

    debts within as short a time as possible.

These steps may save you from queueing outside the offices of debt

counsellors next January, as 141?088 people did this week.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.