| 101 Business Opportunities and Ideas Discover 101 Business Opportunites and Ideas in South Africa By: Franchise Finder | ||||||||||||||||||||
| Part 1: Online Affiliate Network Opportunities
Online affiliate marketing is a great way to make extra money. Sit back and watch while you start earning money from the efforts you put in. Affiliate marketing is ideal for those that have their own website or access to internet marketing. Affiliates are those that place banners advertising another company on their own site. They will then earn a commission from every sale that is generated through their efforts. Affiliate networking is all automated, so every sale is recorded and members can easily sign into their account to check their sales totals and commissions. You could also be a regular shopper at an online business and earn commissions and rewards for referring family and friends to support the same site. Either way, there is a lot to be gained fromaffiliate marketing. The following online affiliate network opportunities should be considered:
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Tuesday, 8 March 2016
Sunday, 8 November 2015
Saving Tips by Dean Gerber
Johannesburg - In 2014 I travelled to Omaha, Nebraska to attend
the Berkshire Hathaway annual shareholders meeting. Thirty-nine thousand
shareholders in Warren Buffett’s famous holding company travelled from around
the world for a six-hour question and answer session with the 84-year-old
Buffett and his 91-year-old business partner Charlie Munger.
Buffett has referred to the meeting as “Woodstock for
Capitalists”. If you were attentive and took in every word, you would have
heard all about the company in immense detail, with matters such as preferred
annual returns, bolt-on acquisitions, return on investments etc.
Being slightly more of a layman, I preferred to listen out for
the high-level wisdom that Buffett dispenses. He has a way of simplifying life
and business down to common sense - Buffett famously only invests in businesses
that he himself can understand.
I feel the same way. It is crucial to un-cloud complicated money
matters and to look at things on a fundamental level. Most of us spend the
majority of our lives working hard for our money, but how much time do we spend
thinking philosophically and simply about the everyday ways in which we spend
and hopefully invest it?
These are some of my basic money tips:
1. Pay your DStv account upfront for the year
This is my number one tip to anyone who asks me how to start
saving money. It’s the best, guaranteed saving I’ve seen on a R9 000 upfront
spend. 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. I’d look at this as if it were
an investment.
Here’s why: as they do each year, DStv increased the cost of
DStv premium (including access fee) from R740 per month to R780 per month from
April 1. That’s an increase of R480 per year. However, if your account is paid
upfront for the year before April 1, Multichoice will charge you last year’s
price. What’s more, they will also only charge you for 11 months!
Let’s calculate the saving/return they’re offering you: (R480 +
R740)/R9 360 = 13%. Obviously, if you kept the money in an interest-bearing
account and let the balance diminish throughout the year you would earn
interest, which is an opportunity cost to you.
But this is minimal compared to the 13% on offer. If you pay the
R9k on your credit card, you could even roll the physical payment for another
two months (at which point you would already have paid three months of
subscriptions anyway), but we’ll get to that later.
2. Switching funds triggers CGT
This might not sound like something particularly important until
it happens to you – and I’ve seen people hit by it twice this year already.
When you move money between funds within an asset manager or a bank, capital
gains tax is triggered. For example, you invested R500k in an equity fund 5
years ago. Your money is now worth R750k.
You decide that the market is a bit too volatile for your liking
and you switch the money into a balanced or a stable fund. A capital gain of R250k
is triggered and you will be required to pay tax of R33 825 [R250k x 41% (tax
rate) x 33% (CGT inclusion rate)] if you are in the top tax bracket.
Of course, you will have to pay the CGT at some point in your
life when you cash out the investment anyway. It just brings the cash flow
forward. If you’re not expecting it, this can be a big hit for you. Make sure
you double check the tax implications with the financial institution before
doing something like this.
3. 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. They allow you to
save a maximum of R30 000 per year (and R500 000 in your lifetime) into a
specially designated fund/account.
Often, these are the same funds that you may already be
investing in (if so, you might as well change over by opening a tax-free
version of that account). 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.
In my opinion, it is ideal for younger investors to invest this
R30 000 in high risk/high yielding funds as opposed to stable funds/fixed
deposits. Firstly, the larger the gain you can potentially make, the higher
your potential tax saving will be when you eventually cash out. This is
different to a pension/retirement annuity where your main tax saving is on your
upfront contribution.
Secondly, we all already receive an interest exemption annually,
which should be exhausted on your more stable, interest bearing investments.
The tax-free-savings account could then be used for dividend-yielding
investments.
What is also important to note is that once you cash out your
investment, your lifetime allowance into the savings account is depleted by the
base value of the amount you cashed out. So it makes sense to let this money
grow for as long as possible.
Lastly, if you have a family, I would consider investing the 30k
per year for every family member on the first day of the year (giving your
money as much time to compound as possible). Keep in mind that you are only
allowed to donate a total of 100k per year to your children/spouse tax-free. So
if you have more than three dependants, don’t forget about the donations tax
implications.
4. Don’t keep idle money in your bank account
By far the most profitable type of deposit for a bank is what
they term “idle deposits”. An idle deposit is money that an account holder
leaves in their current account earning very little or no interest. The
majority of that money is lent out as short-term loans and the bank makes a
fortune on the difference between the interest charged and the interest it pays
(or doesn’t pay). My bank account, for instance, earns the tidy sum of 0.2%
interest on balances above R100k.
Many of us leave money lying around in current accounts earning
nothing, while spending our time complaining about the 13c per litre increase
in the petrol price. My suggestion would be to:
• Move the money in and out of your bond for short-term purposes
(if you have a flexi-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).
• 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).
The latter is a truly ingenious product offered by FNB. It turns
your home loan into an overdraft on your current account. As an example, let’s
say your home loan balance is R1m and your salary is R30k per month. Your
salary is paid into your home loan, reducing the balance to R970k.
As you spend your salary throughout the month and your debit
orders come off the account etc, the balance on the home loan increases again
slowly back up to the R1m mark. In effect, you are saving say 8% to 10%
interest on money that would have earned nothing until spent.
5. Saving into your bond
In November 2014, I wrote an article for Moneyweb about residential property investments. I received a
lot of critical response for suggesting that saving into one’s bond/loan is a
bad idea. Obviously, a lot depends on your personal financial circumstances.
However, I still propose that paying off your home loan as quickly as possible
does not always make financial sense. My reasons for this are twofold:
1. Interest rates have been extremely low for the last few
years, to the point where it has been fairly easy to find an investment that
will earn you a better return than the interest saving you can make by repaying
capital on your loan. Perhaps this will not be as true going forward if
interest rates increase sharply and the market pulls back somewhat.
Paying off other debt can also be a better investment than your
bond. I recently met someone who was saving monthly into their bond even though
they had a car loan and credit card debt – always remember to pay off your more
expensive debt first. If you are more of a passive investor or you are very
risk-averse, then saving into your bond is a better option than a money market
account or a fixed deposit.
2. 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 rand of
marginal income you earn, you will be entitled to a tax deduction of an
effective 41% on each rand of interest paid. If your loan interest rate is
9.25% (prime), your effective cost of interest is actually only 5.45%
(9.25*0.59).
Lastly, if you’re going to save into your bond, make sure that
the bank does not capitalise that payment and that you have a flexi facility so
that you can access it later on as a form of cheap finance for another
property, a new car etc.
6. Understand how to use a credit card
A credit card can be your best friend if you know how to use it
correctly. Of course, banks earn crazy amounts of interest from credit card
users who don’t pay their balances on time each month. Here are some basic
things many people don’t know about credit cards:
• The 55 days interest-free credit doesn’t necessarily start
from the day you swipe your card. It starts the day after your statement date.
Each day after that, you have 1 less day to pay back the money all the way down
to 25 days. 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 swipe the day before your next statement date –
on the 12th - you will only have 25 days to pay.
• If you do pay the “minimum repayment” (and not the full
payment), you are charged interest. If you don’t pay the “minimum repayment” on
the card, you are charged backdated interest from the day that you swiped the
card (up to 55 days back)!
• The interest rate charged on your card is generally very high.
Don’t fool yourself into thinking that this is a good way to borrow money.
If you manage your repayments properly (most banks allow for an
automatic debit pull for the minimum amount due at 55 days), you can
effectively roll your spend over for payment up to two months later. You should
take advantage of this by investing the money that you would have spent in cash
into short-erm investments to earn interest on the bank’s money.
7. Channel your spend to your credit card
I could write for a long time about credit card loyalty
programmes – they’re somewhat of a passion of mine. I even tried to buy my car
on my credit card. Programmes like eBucks (FNB), Greenbacks (Nedbank) etc can
be lucrative ways to benefit from your existing monthly spend.
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. There are
certainly many hoops to jump through to get to the top loyalty earning bracket.
However, at the least you should expect to earn 1% back on your credit card
spend.
If you can channel an annual spend of for example R100k per year
(R8.3k p/m) to your card, you could earn an extra R1 000 per year.
8. Medical savings account versus hospital plan
I’m going to write very generally here because I haven’t
researched every medical aid scheme in South Africa. 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. The additional amount that you
pay for the savings plan goes directly into your “savings account” until used.
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. This R6 000 is depleted as you use it throughout the
year. If you don’t use it this year, it carries over to next year. If you leave
the medical aid, they will pay the savings back to you. It’s your money. The
medical aid just holds it for you – and pays you very little interest on the
balance.
Obviously, if you happen to use up most of your savings in the
first month or two of the year the medical aid is, in effect, giving you
interest-free credit on the savings you’ve used but for which you have not yet
paid (your break-even point here is 6 months).
But I suspect that this would not apply to the majority of
members – otherwise the whole idea of medical aid would probably not work in
the first place. If your savings are carried over for a second or third year,
then there is a compounded lost opportunity cost to not investing the savings
money yourself.
So if you have the self-control to save for day-to-day medical
expenses and you are a fairly healthy person, a hospital plan could perhaps be
better suited to you. NB: there are many schemes that do offer additional
benefits on their savings option so you need to investigate this fully before
making a decision.
Lastly, it’s important to note that if your company
“contributes” a portion of your medical aid cost, it is often just a
reallocation of your cost to company. Many people opt for more expensive
medical schemes because they think their employer is paying more towards them.
In reality, the employer contribution is just an allocation and
if you opted for the less expensive scheme, your take-home salary could be
higher.
9. Tax benefits of pension funds and RAs
There’s a lot about pension funds that bugs me. They are one of
the most fee intensive ways to invest your money. Most functions are generally
outsourced to providers - from the admin to the investment decisions to the
investments themselves.
In effect, this makes for a layered system in which everyone
involved takes a cut in the form of a percentage of funds invested or a
percentage of the return generated. Fees are charged all along the chain. On
top of this, many pension funds are also mismanaged due to the disconnect
between management and decisions made.
But you cannot avoid the massive benefits pension funds and
retirement annuities (RAs) offer you from a tax perspective. Undoubtedly the
biggest benefit is the full upfront tax deduction. This means that if you are
paying tax at a 41% marginal rate, you will receive 41% of everything you
contribute to your pension/RA in upfront cash from the South African Revenue
Service (Sars)!
• 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. You
also get an immediate tax benefit set off against your PAYE each month.
• If you contribute to the fund directly, you’ll receive the
money back in the form of a refund when you submit your final tax return – the
benefit here is that you can invest the money for the year yourself and make
your contribution just before the end of the tax year.
I’ll let you decide which is preferable. But in effect, Sars is
paying you to save money! Depending on how much your company is paying over for
you already, you can also look at topping up your contribution to take
advantage of the full deduction allowed (which is capped).
When you cash out (after the age of 55 aside for a few
exceptions), you can only withdraw one-third of your funds as a lump sum and
there is a partial tax exemption on this withdrawal. 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.
* This guest post is by Dean Gerber CA (SA), who works at VAT IT
and is a residential property investor. He can be contacted on: gerberarticles@gmail.com.
Disclaimer: All
letters and comments published in MyFin24 have been independently written by
members of the Fin24 community. The views are therefore their own and do not
necessarily represent those of Fin24.
Saving Tips from Old Mutual
SAVINGS TIPS
Below are some practical tips on what you can do to start saving.
Below are some practical tips on what you can do to start saving.
MAKE SAVINGS A PRIORITY
Your goal should be to save at least 10% of your pre-tax earnings. Consider paying yourself first by starting a regular savings plan that could form the backbone of a fund from which you will be able to draw money to cover the necessities of life.
Whether you are saving for a major purchase or for your retirement, you will never reach your goals unless you make savings a priority. Little changes can add up to big savings on expenses. Those savings can be put to good use for achieving your long term savings goals.
Are you a spender or a saver? Be honest with yourself and select investments that will provide you with the discipline you may need.
Your goal should be to save at least 10% of your pre-tax earnings. Consider paying yourself first by starting a regular savings plan that could form the backbone of a fund from which you will be able to draw money to cover the necessities of life.
Whether you are saving for a major purchase or for your retirement, you will never reach your goals unless you make savings a priority. Little changes can add up to big savings on expenses. Those savings can be put to good use for achieving your long term savings goals.
Are you a spender or a saver? Be honest with yourself and select investments that will provide you with the discipline you may need.
MAKE SAVINGS FUN
Turn savings into a game. Instead of force feeding budgeting tips to yourself, look at this as an adventure. Try to top your own savings each month or compete with a friend. Make savings a family affair – have a fun programme of savings for everyone to enjoy.
Consider having a kitchen jar to save money for a family holiday. You might want to give yourself pocket money allowance. The key is that your spending should not exceed your allowance. After the money is gone, its gone.
Turn savings into a game. Instead of force feeding budgeting tips to yourself, look at this as an adventure. Try to top your own savings each month or compete with a friend. Make savings a family affair – have a fun programme of savings for everyone to enjoy.
Consider having a kitchen jar to save money for a family holiday. You might want to give yourself pocket money allowance. The key is that your spending should not exceed your allowance. After the money is gone, its gone.
GETTING STARTED WITH A SAVINGS PLAN
Don’t neglect tomorrow due to extravagance today. If you need to start savings, start TODAY! Procrastination is enemy no 1.
Invest when the market is low, its sale time! Its important to invest for the long haul and be prepared to ride out the highs and lows.
It may help to draw up your bucket list and separate it into short, medium and long term goals. This will play a large part in selecting appropriate savings vehicles to achieve these goals.
Don’t neglect tomorrow due to extravagance today. If you need to start savings, start TODAY! Procrastination is enemy no 1.
Invest when the market is low, its sale time! Its important to invest for the long haul and be prepared to ride out the highs and lows.
It may help to draw up your bucket list and separate it into short, medium and long term goals. This will play a large part in selecting appropriate savings vehicles to achieve these goals.
CREATE A BUDGET
A great way to help save money is to create a budget, and then stick to it. Even by just tracking where the money is going, you will be more aware of your spending habits and eliminate unnecessary spending. One of the best ways to save money is to never see it. Set up direct debits and designate that some of your money goes directly into a savings account.
Keep a money jar that you can throw all your change into each night is a great way to save money. Plus, if you keep a note of how much you spend, you will be able to calculate how much your day-to-day living is costing you.
Avoid temptations such as special offers popping into your mailbox daily, unless it’s something you have been looking out for specifically.
BUDGET TOOL
A great way to help save money is to create a budget, and then stick to it. Even by just tracking where the money is going, you will be more aware of your spending habits and eliminate unnecessary spending. One of the best ways to save money is to never see it. Set up direct debits and designate that some of your money goes directly into a savings account.
Keep a money jar that you can throw all your change into each night is a great way to save money. Plus, if you keep a note of how much you spend, you will be able to calculate how much your day-to-day living is costing you.
Avoid temptations such as special offers popping into your mailbox daily, unless it’s something you have been looking out for specifically.
BUDGET TOOL
SAVING FOR RETIREMENT
Retirement should not be regarded as a point in time but rather as a period over which transition is made from living off earnings to living off savings. When you cannot work in old age, your money will be working for you.
You must start early enough, and you must save enough. If you leave off starting to save for retirement from 30 years before to 10 years before, you will have to put away 10 times as much each month.
Take retirement savings seriously and do more than your parents and grandparents did.
RETIREMENT CALCULATOR
Retirement should not be regarded as a point in time but rather as a period over which transition is made from living off earnings to living off savings. When you cannot work in old age, your money will be working for you.
You must start early enough, and you must save enough. If you leave off starting to save for retirement from 30 years before to 10 years before, you will have to put away 10 times as much each month.
Take retirement savings seriously and do more than your parents and grandparents did.
RETIREMENT CALCULATORSAVING FOR EDUCATION
Savings funds can be set up long before it is known exactly where they will be needed. Save a bonus in an RA and each year after that top it up by the amount saved in tax from the previous year plus the amount by which the bonus for the current year exceeds the bonus from the previous year. Double up on money saved by your children to encourage them to develop a savings habit.
EDUCATION CALCULATOR
Savings funds can be set up long before it is known exactly where they will be needed. Save a bonus in an RA and each year after that top it up by the amount saved in tax from the previous year plus the amount by which the bonus for the current year exceeds the bonus from the previous year. Double up on money saved by your children to encourage them to develop a savings habit.
EDUCATION CALCULATORSAVE ON BANKING & INSURANCE
REDUCE HOUSEHOLD EXPENSES
CAR EXPENSES
Keep your tyres properly inflated – you’ll prolong their life as well as save on petrol. Regular maintenance of your car – like your home – will ensure it lasts longer. Make it part of your routine to check the car's oil, water and tyre pressure regularly. Live closer to work. It's better to pay more for the house, an appreciating asset, rather than on petrol and maintenance on the car.
Keep your tyres properly inflated – you’ll prolong their life as well as save on petrol. Regular maintenance of your car – like your home – will ensure it lasts longer. Make it part of your routine to check the car's oil, water and tyre pressure regularly. Live closer to work. It's better to pay more for the house, an appreciating asset, rather than on petrol and maintenance on the car.
20 Simple Tips by Brittney Castro
These days, in our world of instant gratification, it's more important
than ever to be able to stay focused on saving money any way you can. So to
help you monitor your spending habits and cut expenses, here are 20 easy ways
you can save every day—starting right now. How's that for instant
gratification?
1. Make a weekly "money date." Commit to sitting down
with your money once a week for a money date. During this time, update your
budget, review your accounts and track your progress against your financial
goals. Like any relationship, if you want your financial life to improve, you
must spend time with your money.
2. Plan out your meals for the week. Taking a few hours every
weekend to grocery shop and meal plan for the week will definitely save you
money, as dining out is the No. 1 expense for most households. By eating at
home, you save money that would otherwise be spent on tax and tip—and you
usually save calories, too.
Read More South Africans lag in retirement saving
3. Cut out cable. Gasp! Cut out
TV?! Never! But with services like Hulu, Netflix and Amazon Prime, you can now
watch your favorite TV shows and movies for a fraction of the cost of cable TV.
A study by market research firm NPD Group shows that cable bills will
soon grow to an average of R123 per month, or R1,476 per year. By switching
over to an online service or cutting out TV altogether, you can save that money
for another financial goal—such as paying off debt, traveling or saving for a
down payment on a home.
4. Switch to an exercise pass
program. If you love working out, an exercise pass program such as Class
Pass is the way to go. By paying a membership fee of R99 per month, you are
welcome at many of the best studios in your area. And classes—like cycling,
yoga, Pilates, barre, strength training, boot camp, dance and more—are
unlimited. This beats having to pay for each studio's monthly membership or
individual class fee, which can add up to hundreds of dollars a month.
5. Host a potluck. The more
friends you have, the more money you spend on lunch dates, birthday parties and
gifts. Switch it up and, instead of meeting over a fancy dinner, host a potluck
and have everyone bring his or her favorite dish. That way, you can save money
you'd spend on restaurant extras, such as tax, tip and parking—and you'll
usually have a more intimate meal together, too.
Read More Sandwich generation in a pickle
6. Leverage lodging rental websites. Finding a
place to stay while traveling is so convenient when you use a lodging rental
website such as Airbnb, Travelmob or Housetrip. You can often find a place that
has a kitchen (so you can cook meals at home to save money) at a rate that's
comparable to hotels. You can even rent out your own place on sites such as Airbnb
while you travel to make some extra cash to pay for your own travel expenses.
It's a win-win scenario.
7. Make coffee at home. This one's
not my favorite, as I absolutely love going to coffee shops and drinking
delicious organic coffee. However, spending R4 to R5 on coffee every day
definitely adds up. So try my approach and allow yourself a few days a week to
buy coffee at cafés, and make it at home the rest of the time.
8. Work more. When you're
working a lot, there's not much time left to shop and spend money. So stay busy
and pursue a career you love.
9. Wait 48 hours before you click
"buy." Since we can have anything we want these days with just the click
of a button (there's that instant gratification again), you need to find a
system to help buffer your impulse purchases.
Example: Wait 48 hours before spending money on things that cost more
than a certain amount. When you do, you will find that, most of the time, the
item was more of a "want" than a "need." Plus, you'll save
money and work toward being more mindful with your spending.
10. Use blogs and Pinterest to learn
DIY beauty treatments. Self-care is important—but going to spas and getting pedicures,
massages, etc., can really add up. Allow yourself a certain amount to spend on
these things; then use blogs and apps like Pinterest to find at-home beauty
treatments to help you save money. Often you can find a DIY organic option
using common household or kitchen products.
Read MoreHang up on student loan collectors
11. Outsource online. Time is a
commodity, and your time is precious and valuable. And these days, there are so
many tasks you can outsource that will save you time and money. But how do you
figure out if outsourcing something is worth the expense?
A great thing to do is to actually calculate the cost of your time,
which will help you figure out if you can pay someone to do something for less
than your hourly rate. Here's an example: A monthly net income of R3,000
divided by a total of 160 hours worked equals an hourly rate of R16.75. Now
that you know the value of your time, you can strategically outsource it using
a service like Fiverr or Task Rabbit for a fraction of your own hourly rate.
12. Get creative with gifts. Find creative
ways to express your love to friends and family members with free, lower-cost
or handmade birthday and holiday gifts. After all, a handwritten note
explaining why you love someone can be more sentimental than some expensive
gift he or she may never even use. Most people will appreciate the thought behind
your gifts more than anything, so don't be afraid to save money and find free
ways to celebrate birthdays and holidays.
13. Choose quality over quantity. This can apply to
food, clothes, electronics and much more. Although it's tempting to choose the
more budget-friendly version of an item, sometimes choosing quality over
quantity will save you more in the long run. Save up your money and get the
best-quality product you can afford, and leverage the cost-per-wear philosophy
with more expensive clothing and shoes.
This applies to food, too: Buying quality organic food can nourish you
in ways that fill you up more than the prepackaged, processed stuff and
potentially save you money on health-care expenses in the future, since you're
taking good care of yourself. Find a balance that is right for you and choose
quality whenever you can.
14. Deal with your emotions. Excessive
spending is often a way to avoid feeling certain emotions. If you check in with
yourself before you go on a major spending spree, you may be able to identify
if you're feeling bored, lonely or stressed and are therefore spending money as
a means to avoid the underlying emotion. Check in with yourself before you buy,
and be mindful with your spending.
15. Stop trying to keep up with the
Kardashians. It's hard to keep your blinders on and not compare your financial
life to that of others, especially celebrities. However, it is really important
to be clear about what matters most to you and make sure you build a financial
plan that supports that vision. This will keep you moving toward your financial
goals and stop you from spending money on things you don't need, to impress
people you don't like.
16. Read a personal finance book. When you learn
about personal finance, you'll learn even more strategies to help you save
money for your goals in life. Knowledge is power, and the more you know, the
more you can save.
Read More When to walk away from investments
17. Balance your
"FOMO/YOLO" mind-set. With social media controlling our lives like
never before, people often fall victim to the "fear of missing out"
phenomenon and instead go overboard with a "you only live once"
mentality.
While it is important to live in the present and soak up each precious
moment of life, make sure you balance that out by saving for your financial
future, too. Without checks and balances in place, you can find yourself saying
yes to everything and spending more money than you have—all due to the fear of
missing out.
18. Map out your financial goals. Be very
specific with your financial goals. For example, saying, "I want to save
for a home down payment" is not enough. You need to map out how much you
need, by when and what you need to save every month in order to reach the goal.
When you know what your targets are, you're more likely to stay the course and
continue saving for them for the long term.
19. Keep your eye on the prize. Staying focused on
your goals takes discipline and determination. Saving can be easy and exciting
at first, but after a while you may lose that initial motivation and start to
find other things you can spend that money on. To avoid veering off course,
check in with your goals regularly and keep your eye on the prize.
"The truth
is, there are many ways to save money. Find the ways that work for you, and
slowly start incorporating the strategies into your life."
20. Track your progress. South Africans save
only 5.5 percent of their money compared to the 20 percent that personal
finance indicates you should put away. But instead of feeling ashamed about
your lack of savings, just start by saving something.
Even 1 percent is better than nothing. Track your progress and continue
to increase the number year after year. Step by step, day by day, you can get
to that 20 percent savings level.
The truth is, there are many ways to save money. Find the ways that work
for you, and slowly start incorporating the strategies into your life.
—By Brittney Castro, founder and CEO of Financially
Wise Women.
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