Spring is the season of new beginnings!
Want a fresh start that doesn’t include debt?
Not sure how you can grow your savings while you’re buried in debt?
Here are a few ways to help your finances blossom.
Make a Plan (and stick to it!)
Ask yourself: How much would you like to save? What are you saving for? When would you like to be debt free? Once you know why you’re saving, it’s easy to set goals and give yourself a time limit. This will keep you motivated and ensure your goals don’t get pushed back.
Is it a need or a want?
Are you saving for something you need or something you want? If you’re drowning in debt, do you really need that big screen TV? Be honest with yourself and set realistic (and necessary) financial goals that will help grow your savings and get rid of debt.
Budget budget budget!
It’s simple: spend less and/or earn more. Everything begins with knowing where your cash is going, down to the cent. To start your budget, compile a list of current expenses so you know how much money you’ll be spending in a given month. Budgeting will also help you prepare in situations where you have to deal with added expenses that might pop up like birthdays, holidays, and car maintenance that can sometimes sneak up on you. Planning ahead is key when it comes to saving!
Less withdrawals and transfers
Treat your money as if it were less accessible than it really is. Most banks don’t charge for withdrawals but don’t let that tempt you. Stick to your budget and end goals because it will pay off in the future!
Make savings automatic
As they say, what you can’t see you won’t miss. After you’ve set up your savings fund and calculated the savings you need to achieve your short to long-term goals, you should have that money automatically directly deposited into a separate savings account. Out of sight, out of mind.
Minimise (or say no) to credit
Credit is essential at times, but it can also get you into a lot of debt that’s not easy to get out of. When you use a credit card, it feels so easy and manageable, until your debt starts to spiral out of control. With interest rates on most credit card debt at approximately 21%, a credit card is very expensive debt – so use it wisely or avoid them altogether.
Here are a few more ways to help you save money in the long term:
- Retirement plan. Retirement can creep up on you a lot quicker than you may expect. Therefore, preparing for this type of investment is crucial. Be sure to do your homework though regarding various retirement plans, especially if your current employer does not include some sort of contribution in your contract.
- Children and their education. As parents we all want the best for our children, including, giving them a good education for their futures. But try put some money away now to help cover the additional school expenses like outings and text books that always pop up to surprise you.
- Medical aid plan. When times get tough, one of the first things you tend to think of cancelling is your medical aid. Don’t make a decision you’ll regret. Medical aid, a hospital plan or gap cover can really help you financially if or when the time comes.
- Don’t wait until all your clothes are old and worn out. As soon as an item of clothing is ruined, throw it out and replace it. This will help avoid you having to make a bigger purchase of multiple items at once.
Tackle your debt
Contact us at Meerkat and we’ll help you spring clean your debt so your finances can grow to new heights. We’ll deal with all your creditors on your behalf, leaving you to focus on what matters to you most. Remember, it’s never too late to start saving and getting rid of debt!