As South Africa’s economy continues to dip as a direct result of lockdown, it is vital for students to get serious about saving and make it a priority. Saving sounds simple enough – but many of us have developed negative spending habits that could make it a lot more challenging than originally expected!
Here is a breakdown on how to develop better money habits so that you can start seeing your savings skyrocket.
Be honest with yourself
What has been the main hurdle standing between you and building up a nest egg until now? Do you have an incurable lust for online shopping? Or are you spending all of your spare cash on food to avoid cooking? Identify your bad spending habits and make the decision to turn them around. Get serious about saving.
Understand the budgeting basics
Let’s be frank – at this point in time, you probably have no clue where your money is going and when. The idea of drawing up a budget might seem overwhelming, but it doesn’t have to be. These days, we have technology at our fingertips to simplify these processes. Be sure to download a free money tracking app to get a better feel for your cash flow and where you need to start making adjustments.
Set yourself a very specific savings goal. There is lots of research to suggest that by setting goals, we increase our chances of success. Saying that your goal is to ‘save more’ isn’t enough. Instead, you should say ‘I want to save R4 000 by March 2021’.
If you don’t have any income to spare for savings right now, look into ways in which you can reduce your expenses. For example, it might be time to look for new quotes on your student car insurance or to invest in a cellphone contract with a different mobile operator.
Other aspects of your daily life to pay attention to include the groceries that you buy (look at eating less meat and processed foods), your toiletries (it is often possible to save significantly by buying everyday items in bulk), and your entertainment (do you really need to eat out with your friends every weekend or is an evening in sure to be just as worthwhile?).
It is time to get serious about saving!
Share some of your saving-savvy tips with us on our Facebook page using the hashtag, #SavingTipsforStudents.