How can I not get discouraged easily when trying to save money? You can reach your savings goals sooner. Starting to saving some will help create the habit of saving. Make purchases with paper money, not exact change, and always save the change. Coins and change may look insignificant but as they accumulate over time they can help you save. A few banks now offer free coin counting machines. If you get paid about the equal amount on a regular basis, it'll get easier to budget your money over time.If you have any a variable income, it'll be harder to anticipate your expenses, since you won't know when's the next time you'll get paid. To use affirmations.
Have a hobby? Match your funds. A significant habit for saving is if you have a hobby, such as model airplanes, scrap-booking, dirt biking, scuba diving, etc., establish a hard and fast rule that whatever you allow yourself be spent on your hobby, you match those funds to your savings. For instance, if you buy yourself a $45 pair of riding gloves, another $ 45 goes to your savings.
Seriously about saving? You will only be tempted to spend money you cannot afford to lose. Just shop with a purchased shopping list.
"If I can't afford it, I'm still a worthy person, and I still deserve to fulfill my savings goals!"
Cutting Expenses
Remove luxuries from your budget. Eliminating luxury expenses is an important first step to improving your financial situation since this won't impact your quality of life or your ability to perform your work significantly.
Create a Financial Routine
Having a financial routine is one of the best ways to master your money and prevent unnecessary expenses like bank overdraft fees and late charges on bills and loan payments. The solution for keeping on top of your finances and never getting hit with expensive late fees is to follow a money management system.
Plan Your Meals
By taking the time to plan your family's meals , you remove the excuse of not knowing what's for dinner. To help plan your meals, use a free online meal planner, such as Food on the Table
Shop Smart
Heading to the store for a forgotten gallon of milk or an extra loaf of bread can cause you to repeatedly overspend all week long, and plus, it wastes gas.
Arrange for a Staycation
Instead of blowing your budget on a trip to Disneyland , see what fun stuff you can do nearby instead. Vacations are about spending time and making memories together.
Pay your DStv account upfront for the year
If you're saving money into any sort of risk-free investment, you should seriously consider holding back the first R9k and paying it over to our friends at MultiChoice at the beginning of each April. Let's calculate the saving/return they're offering you: (R480 + R740)/R9 360 = 13%.
Switching funds trigger CGT
- Your money is now worth R750k.
A capital gain of R250k is triggered and you will be required to pay a tax of R33 825 R250k x 41% (tax rate) x 33% (CGT inclusion rate) if you are in the top tax bracket.
Tax-free savings accounts are a must
Tax-free savings accounts are a new savings product introduced in South Africa this year through government legislation. For anyone looking to save long term, these accounts are an absolute must-have because no tax or withholding tax is payable on your capital gain or on your dividends/interest earned.
The tax-free savings account could then be used for dividend-yielding investments.
Don't keep idle money in your bank account
An idle deposit is a money that an account holder leaves in their current account earning very little or no interest. My bank account, for instance, earns the tidy sum of 0.2% interest on balances above R100k.
- • Move the money in and out of your bond for short-term purposes (if you have a flex-bond);
- • Move the money into a money market account or seven-day call fixed deposit;
- • Use your credit card effectively (to be discussed later in the article); and
- • Apply for a Facility or a One Account” (FNB).
Your salary is paid into your home loan, reducing the balance to R970k.
Saving into your bond
Paying off other debt can also be a better investment than your bond. Interest paid on a loan for an investment property is fully tax deductible. If you are in the top tax bracket paying 41% on each brand of marginal income you earn, you will be entitled to a tax deduction of an effective 41% on each band of interest paid. If your loan interest rate is 9.25% (prime), your effective cost of interest is actually only 5.45% (9.250.59).
Understand how to use a credit card
For example, if your statement date is the 13th of the month, you will have 55 interest-free days if you swipe on the 14th and 54 days if you swipe on the 15th etc. • If you do pay the minimum repayment” (and not the full payment), you are charged interest. • The interest rate charged on your card is generally very high.
Channel your spend to your credit card
I even tried to buy my car on my credit card. Depending on your rewards level, banks pay anything between 1% to 6% on everyday spend and I've seen up to 50% on fuel spend.
Medical savings account versus hospital plan
A medical savings account is a way for a medical aid to force you to save for day-to-day medical costs that the medical aid itself does not provide for in benefits.
In many cases, there is no difference in benefits between a hospital plan and a basic medical savings plan. For example, if a hospital plan costs R1 000 per month and a medical savings plan costs R1 500, the additional R500 x 12 months will be your savings for the year. If you leave the medical aid, they will pay the savings back to you.
Tax benefits of pension funds and RAs
There's a lot about pension funds that bugs me. Undoubtedly the biggest benefit is the full upfront tax deduction. • If your pension is deducted monthly from your salary, the tax saving is embedded in your net salary received - the benefit to this is that your money has longer to compound in the fund, earning you tax-free gains. The remaining two-thirds must be paid as an annuity (fully taxed). So in reality, a portion of the upfront tax saving is recouped when you cash out, but there is still a major cash flow timing difference to take advantage of because you can invest the upfront tax saving elsewhere.
You can't avoid the massive benefits pension funds and RAs offer from a tax perspective. The biggest benefit is the full upfront tax deduction.
Bring Your Own Lunch to Work
(Are you trying to save money? believe me, it sounds more hurtful in Filipino) when I brought my bacon (packed lunch) to work. If you work in a call center in Makati, you are most probably spending about seventy pesos per meal. Don't you always feel like those food concessionaires are selling you overpriced food?. Don't you know that you can save money by buying in bulk from the supermarket?
Eat Out Less
On weekends, you occasionally would feel tired to cook food and decide to just eat out. Eating out is harmless if you don't make it a lifestyle. One of the reasons why someone would eat out a lot is laziness. However, another reason why you might be compelled to eat out a lot is your friends. I remember declining a lot of invitations to eat out from my friends.
Smart Buying
I'm not saying that you shouldn't buy electronics. You don't need a ten thousand peso camera which has wifi and other features which you won't have any need of. If you need to call and send text messages then buy a cell phone but for Pete's sake don't buy a smartphone which has so many features that you don't need. If you need it and it's on sale, then it's definitely suit but if it's something that you don't need, DON'T buy it just because it's on sale. Remember that if you don't need it, it is of no value to you.
So many times, we buy toys like tablets, cameras, or smartphones because they are status symbols. When you buy electronics and clothes, those depreciate.
Staycations
I love staycations. If you love books, then why not stay in bed all day long with a good book? For people who don't really have places conducive for a staycation, you can forego a vacation for a trip to the museum or the zoo.
Don't Get Fooled by the Piso Fares and Group Buying Deals
One thing that these group buying websites and airline ticket sales have in common is they both create a sense of urgency among people. Luckily it was back when Piso fares totaled to only one hundred and fifty pesos for a one-way ticket. I know people who book discounted plane tickets as expensive as two thousand pesos thinking that it's okay even if they won't be able to use them. When you gamble you spend money in the hopes of multiplying your money.
Stay Away from Bad Debt
I remember last summer when the heat was unbearable (which is fast becoming the norm every summer), my friend applied for a credit card simply to buy an air conditioner. I know people who would get a credit card just to buy a cellphone or a laptop.
People First, Then Money, Then Things
The bigger question I guess is how much money they actually give to their parents or relatives. You can still, however, save money with this scenario if you live extremely below your means.
Live below your Means
Living below your means is very hard. It is hard enough to live within your means let alone living below your means. Do you find yourself with debt and living paycheck to paycheck?
MAXIMISING YOUR MONEY
Swap 'n' Save: Haven't you always exchanged your books and CDs with friends and cousins? Contribute To Save: Buying books often burns a hole in your pocket. Spending time with nature is both fun and frugal.
Cheap Entertainment: The city's community centers offer a number of quality entertainment options which are also extremely inexpensive. You can opt for musical performances, film festivals, art exhibits, theater productions, dance recitals, sporting events and much more. Free Facilities: In all likelihood, there are several free services, such as the Internet, gym, dance classes, photography clubs and free training for various courses, that your educational institute offers. Utilize these in-house facilities to save money.
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