Tips On Saving Money

Tips On Saving Money:

Saving money can be quite challenging. One of the easiest ways to save money is by having a savings plan. Set a financial goal and work towards it. These tips can assist you in creating a realistic savings plan.

Tip 1:

  • Record your expenses: figure out exactly how much money you spend a month. Keep track of every cent.

Tip 2:

  • Make a budget: once you have an idea of where your money is going, make a budget. Add up your expenses and compare it with your income. This will make it easier to plan your spending and limit your overspending. Take note of expenses that occur regularly but not every month, eg. car maintenance.

Tip 3:

  • Plan on saving money: consider saving as a regular expense. Each month, put aside a fraction of your income as saving.

Tip 4:

  • Goal-setting: one of the most effective ways to save money is by setting a goal. Think about what you want to save the money for and then estimate how long it might take to get that amount of money.

Examples of short- and long-term goals:

Short-term:

-emergency fund

-vacation

-down payment for a car

Long-term:

-retirement

-your child’s education

-down payment on a house

Tip 5:

  • Prioritize: this gives you a clear idea of where to start saving. While focusing on your short-term needs it is important to keep your longer-term goals in mind.

Tip 6:

  • Watch your savings grow: keep track of your progressThis will motivate you to stick to your personal savings plan. This can also contribute to identifying and fixing problems sooner.

Visit your nearest FNB branch to open a savings account or visit their website fnb.co.za for more information