Saving money doesn’t cost a cent! - DebtSafe

PRETORIA, South Africa - June 29, 2015 - PRLog -- South Africa is celebrating National Savings Month in July, but this time of year we are struggling to keep ahead of payments and it’s still a while until the end of the year… don’t stress – we have a few tips to help you get through the money slump!

DebtSafe (http://pr.debtsafe.co.za/) debt management expert Wikus Olivier says, “We believe that every person deserves a decent living. The average South African is paying almost all of their income on debt repayments and we are on a mission to educate individuals to become better off financially.”

According to a survey, which DebtSafe ran in the first quarter of this year, most people’s budgets are stretched; 51% of respondents in the survey indicated they couldn’t make debt repayments, and 41% overspent on their credit cards. These two statistics show that there are no extra cash. If consumers don’t have sufficient funds to make payments on debt, the chances are little that they will put some cash away in the form of savings.

From the above statistic, it is not a surprise that 55% of participants don’t have a savings plan in place. “You need a savings plan to save; whether you want to save for retirement or to buy something like a car or house, you will need a plan to get there,” states Olivier.

Results from a second survey which ran from March to May this year, show that 53,3% of the respondents can’t save because they don’t have sufficient funds to cover monthly expenses and savings.

The most crucial point of taking control of your finances is to be able to measure what you earn and what you spend. “I urge people to start saving… even if it is less than 3% of your monthly salary. It is a good start and will encourage a healthy financial habit,” he says.

“You will only achieve financial freedom through careful planning and discipline. It is not easy, but definitely worth it! Make a note of every cent that you spend during the month, (including tips to car guards, bank fees, etc.) and when you add the amounts, you will know exactly how much money you have spent. Keep a piece of paper and pencil with you at all times and jot it down as you go along. By committing and doing this exercise for only one month you will be able to pinpoint exactly where all your money is going,” advises Olivier.

He adds that it is important to keep track of your financial situation throughout the month, and if you overspend, adjust your budget accordingly. Becoming free from debt means capping your lifestyle and trying to simplify the way you live.

Always make time for fun. Do things that cost little or nothing, such as going for walks, exercising at home, play with your kids, helping others and just generally spend more time with people you care about. It is important to just take a breather and ‘smell the roses’. “This is especially crucial because when people stress about money / finances, they need a stress reliever and spending time outside is healthy. True wealth is having things that money cannot buy,” he adds.

Management at DebtSafe warns people to be conscious and cautious shoppers. Buying “little” things such as bread, milk and other ‘emergency’ foods at the local garage on your way home from work is convenient, but not cheap.

Side bar:

·       Live within your means – don’t overspend

·       Set up a budget for you and your household and stay within your boundaries

·       Be sure that your income supports your household

·       If you can’t afford to pay your clothing accounts, arrange for a settlement and cut up your cards!

·       Don’t take on debt unless you absolutely have to

·       Avoid micro-loans if you can’t afford the repayment

·       Find out where you can invest your money where you will earn a worthy return

·       Teach your children to become credit savvy

·       Start saving now!!!