Save & Invest
Think you can’t afford to save?
Saving doesn’t need to be difficult, if you feel like you can’t invest because you have nothing left at the end of the month, here are a few tips that could see your opportunities to save, grow.
1 less take-away a week could save you R280 per month.
1 less bottle of wine per week could save you R320 per month.
1 less restaurant meal could save you R300 per month.
1 less new item of clothing per month could save you R500 per month.
1 less packet of cigarettes per week could save you R160 per month.
When to start saving
Ideally you want to get into the habit of saving or investing when you land your first job. The next best time to start saving is now. Start by downloading this simple budget planner. It’s an easy spreadsheet that shows you what you’re spending your money on. Include your income (what goes into your bank account on payday) and the amounts for non-negotiables like rent, transport costs, groceries, cellphone expenses and anything else that’s critical to getting through the month. You can also try our digital version.
Now see how much you have left. You want to be putting away about 5 – 10% of your income. So if you’re earning R15 000 then you should be saving between R750 – R1 500 towards your goals or an emergency fund.
Why must I save money?
- Because there are things that you want like a gorgeous Michael Kors handbag, a pair of limited edition sneakers, the latest iPhoneor even a holiday locally or overseas. Saving even a little bit every month helps you get what you want.
- Investing your money helps it grow in a number of ways – through compound interest and the increase in the value of the underlying shares or instruments.
- It makes you financially independent – saving regularly ensures that you have less of a need for credit or loans and more money available to buy or do the things you want.