In a matter of months, you could have a nice little rainy day fund set
aside.
Turn
Old Bills Into Savings
It’s a relief
when you finally pay off a loan or a long-running credit card bill, right? Rather
than spending that money, Stefanie O'Connell, millennial money expert and author
of The Broke and Beautiful Life, suggested turning those funds into
savings. “If you just made the last R300 monthly payment on your loan, start
sending that R300 per month to your savings account,” she says. “You can use
this strategy with smaller things too, like the magazine subscription you just
cancelled.
Unsubscribe
Are you paying
for things, like gym memberships or smartphone apps that you don’t use? Justin
Howell, a saving and investing advisor, suggests cleaning house. “Find your subscriptions and eliminate the
ones you can do without. This could
potentially save you some big bucks this year.”
Negotiate
With monthly
subscriptions, memberships or other ongoing commitments, like software or apps
you pay for every month, that you want to keep, Bobbi Rebell CFP® and host of
the Financial Grownup podcast suggest that there may be an
opportunity to negotiate a better rate. “[If] companies know you like the
service and if all it takes is the right price to lure you back, that is worth
the effort for them,” she says. She also suggests letting the subscription
lapse, if you can, as the company may offer you some great deals to woo you
back.
Bargaining
You may look for
coupons and cashback opportunities as you shop, but have you tried negotiating?
Michael Wheeler, who teaches a negotiations course for Harvard Business School’s
digital learning initiative, says that you can sometimes score a lower
price by doing so. “Start by asking for a discount in plain, clear
language," he says. If you get a no, be persistent, and ask again in a
friendly tone. You might be (happily) surprised at the result. (Ask for a pensioner’s discount where
applicable, a cash discount, etc)
Price
Tracking
Your favourite
store is known for its great prices, but that doesn’t mean you’re getting the
lowest price every time you check out. Exercising a little patience can ensure
that you’re getting the best deal your usual store has to offer. David Mercer
founder of SME Pals, a blog dedicated to helping people turn their business ideas into
profitable startups, suggests using a price tracker. “Stores
have many thousands of sellers behind the scenes who change their prices all
the time as they compete with each other,” he says. “Combine coupons, when
available, to squeeze the very lowest prices out of where you shop on a regular
basis.”
Get
Price Alerts
Gabriella
Santaniello, founder of A-Line Partners, an independent retail research firm
says “If the price of my desired item decreases in price, they send a price
alert email. Now that many designers
have become smarter, this trick applies just as much to apparel as it does to
household goods.” If you have other favorite retailers, Santaniello also
recommends signing up for their email lists, joining rewards programs, and
downloading its app for discounts and exclusive bonuses.
Earn
While You Shop
Liz Eischen of
the Kitchen Table Finances blog, has saved a bundle using rewards
for shopping with retailers like (in South Africa - Pick ‘n Pay, Clicks,
Dischem etc) “This has helped me save money by being more mindful of what I am
purchasing,” Eischen says. “I take a few minutes before shopping to explore the
current offers and identify items I can earn cash back on. These savings go
directly into my savings account.”
Brown
Bag Lunch
You can save a
couple thousand Rands a year by bringing your lunch to work. “The average deli meat and cheese sandwich, a
bag of chips, a cookie, and iced tea costs around R…. a day. That is close to R………..
a year! By making a nearly identical lunch at home, you will spend much less.”
She also says that planning your weekly menu around what’s on sale at the
grocery store could save you at least 35 percent off your bill. Remember to
join your store's loyalty program, and use coupons.
Enjoy
the Convenience
Store pickup and
grocery delivery may seem like a luxury, but it can actually save you money and
precious time. “By having the groceries come to you or by picking them up at
the store, you avoid the impulse purchases that can easily add 20 percent or
more to your grocery bill,” says Kimberly Foss, CFP®, and bestselling author
of Wealthy by Design: A 5-Step Plan for Financial Security. “In
addition to the money you’ll save, the time you gain may be the biggest savings
of all.”
Compare
Your Prescriptions
Avoid overpaying
for your prescriptions. Joe Sanginiti, CEO of FamilyWize,
a prescription savings program, suggests opting for generic drugs over brand
name. “Generics are equally effective and cost much less,” he says. “According
to the FDA, the average cost of a generic drug is 80-85 percent lower than its
brand name counterpart.” He also suggests shopping around, as prices may vary
between pharmacies.
Bottle
Your Own Water
If you’ve fallen
into the habit of buying bottled water, you know it can add up. Instead of
buying water, small business owner, Zaida Khaze, carries filtered water in her
favorite stainless steel water bottles. “I estimate saving lots of (Rands)
per month because I use filtered water versus bottled water bought in cases of
24,” she said. “The savings is even higher if I buy water at any event, where
the price is much higher.” (Our tap water is drinkable. Fill your empty water bottles for later use.)
Eat
In
Eating out
regularly is very expensive. Stan Smith, CEO of SaveDaily,
a private label platform that enables ‘everyday saving’ to all, suggests
starting out by trying to eat out at least one fewer time per week or month –
or quarter. “Depending on how much you eat out, this can add up to many Rands
per period in savings,” he says. “Do that for just a while and you have that
much more in your pocket – or in your savings account.” Smith recommends that
when you do go out, skip the alcoholic beverages. Limit yourself to one drink if you typically
order more. (Order tap water, ice and
lemon – huge savings. And your body will
thank you for sparing it the sugary drink.)
Declutter
As you’re doing
your spring cleaning, gather all your lightly used household items and sell
them to make some extra cash that you can send to your savings account. “It has
never been easier to sell your surplus stuff.
It can be a simple and quick way to turn that rug you no longer
need or those end tables that no longer match your décor into extra savings,”
says Foss. (We have gumtree or local library
or community notice board)
Get
Fit
Access
your fitness
content from DVDs, YouTube,
or low-cost apps instead of paying for that pricey gym membership. Don't want
to give up all those machines and great classes? Showering at the gym is kind
of a pain, but it can be a money-saver. “If you're a dedicated fitness junkie,
take your clothes for the day with you, get ready for work at the gym, and head
straight to the office from there," says Tara Falcone, CFP®. "Doing
so a four to five days per week can reduce your water/sewer and electricity
costs.”
Avoid
Fees
You can pay heavily
for using the wrong ATM! ATM and other banking fees can really add up,
depending on what bank you belong to. “You can avoid paying outrageous ATM fees
by always using your own bank’s ATM or, even better, some online banks allow
you to use any ATM in the world for free," says Alexandra Horigan, money
expert for an online bank. "This is particularly great for frequent
travelers who never know where they’ll be taking cash out next.” Horigan also
recommends switching to a bank that doesn’t make money from “failure fees,”
which result from overdrafts or paying your credit card bill late.
Use It Up, Wear It Out, Make It Do, Do Without
As much as you can, live by this. Use up make-up. Wear out clothes. Make your furniture, car, linen, crockery,
curtains do some more months/years. Eat
one less candy bar or cold-drink per week/month, and then less another. Do without whatever you can do without
spending money on.
Live Well - On An Absence Of Expense
Do your own housework. Clean your own car. Do your own gardening. Buy second-hand. Get plants from your friends who are thinning
their garden. Exchange baby-sitting. Take care of your own children. Make your own popcorn. Watch a movie at home. Mend and dye your clothes. Paint your own walls and windows. Have a “StayAtHome and DayTrips” holiday instead
of staying at a hotel or bed and breakfast. Have you tried camping?
Correlate, Reduce, Simplify
Require as many things in your home as
possible to do double or triple duty.
Take your own shopping bags. Instead of a special spoon rest, use a side plate.
Join the Library
Instead of buying books, courses,
magazines, movies and music, borrow from
the local library. Learn from the best in the world. Borrow books and magazines from your friends
and neighbours. Return what you borrow –
in the same, or better, condition than you received it.
Do
Your Own And Your Family’s Hair/Nails/Makeup/Flowers
Learn – go to the (barber)
with them and watch… Learn from a book/video.
Get basic equipment. Simplify
your hairstyle. Learn to do your own
hair/nails etc. Learn to cut your
children’s hair. Trade with an amateur
friend or neighbour who is talented.
Shop
Efficiently
Use a shopping list. Never shop when you are hungry, afraid, frustrated,
angry, or sad or in a hurry. Shop intelligently
- less frequently (unless you are hand-carrying your shopping home.)
Think
Twice – Or More
Do I need this?... Who says I
really need this?... Is this an
investment that will yield income/ savings, or will it soon be gone? How many (pairs of shoes) do I need? How many (sets of linen) do I really
need? Will this matter in 2 or 5 years’
time? Am I spending money I don’t have,
to impress… who? people I don’t even know?!
Am I bluffed by advertising? Is
my income by working really benefitting our family? What if I stayed home, therefore paid less
tax and travel; cared for our home, clothes, garden and children, wore less
expensive “work” clothes, made our own meals, tutored our children, and saved money by “doing-it ourselves,”? A penny saved is a penny earning me interest… Can I work part-time to “have a foot in the
door” “in case…” and earn a little extra too?
In that way I’ll be more flexible time too. How can we live on one income, even if we
have two? What if I (he/she) get sick, disabled
or die?
Here’s
The Tricky Part…
“You don’t want to live poor
to die rich… but - you also don’t want to live rich and retire poor.” Manage your money, or your money will sly-ly
manage you – Good Servant, Bad Master.
Personal finances are your
sacred stewardship. “O be wise. What can I say more?” (Jacob 6:12)
No comments:
Post a Comment