How to start saving

Hamster

Hamster

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This might be useful to some obscure Googler or even somebody on this forum. I think the best thing you can take from this (as with everything in life) is to list you goals and then do it. If you want to save, find out how much you can save every month and then the first thing you do when you salary is paid is save that amount.

7a9cd8d929b7457da6b874fda923f23b.jpg
 
Also, very important to move money away from your transactional account.

For example, whatever money I have left at the end of the month (other than committed savings), I move to a savings account. This way I start each month with a "clean slate", and you very quickly notice how much money you actually spend on nonsense.

Also, the best way I've found to save is to start using cash instead of swiping my card for everything. I never used to have cash on me, and once you start seeing money physically leaving your pocket, you think twice before spending.
 
Treat your savings as another bill payment. If you don’t there is always temptation to spend the money on something else.
 
srothman said:
Also, the best way I've found to save is to start using cash instead of swiping my card for everything. I never used to have cash on me, and once you start seeing money physically leaving your pocket, you think twice before spending.
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I have thought about that, but the problem with cash is that when you look into your empty wallet, you have no idea where the money went. At least with the card you can track easily, but I agree, its easier to swipe than to exchange cold hard cash (as the 1 Rand Man showed us).
 
Move the moola to another non-transactional account as soon as you can. I transferred a huge chunk of my bonus soon as it was paid in last year. I continue to do the same with every salary that comes in and it works. The account also has to be some sort of investment account which gains a bit of interest so your money isn't like just sitting
 
I heartily recommend You Need A Budget to anyone who wants to learn a no-frills, effective and commonsense way to budget and save. I can't imagine my life without it anymore.

In general, I've heard it said that 10% of your salary is best to save if you want to have the same quality of life in old age that you enjoy now. At the moment I save 20%.
 
I personally hate having cash on me, so I tend to spend it as soon as I have it. The cash method isn't effective in my case, then. :)

Personally, I think the best way to save money and not spend as much is to have some self-awareness and keep track of how you spend. As soon as you realise you're spending R2000+ per month on eating out or something, you'll hopefully get enough of a fright to correct your ways.
 
I take my Net Salary - 30% and that is why I have left to spend for the month. I try and live of just 70% of what I earn (budget on that etc), it seems to be working alright.
 
srothman said:
Also, very important to move money away from your transactional account.

For example, whatever money I have left at the end of the month (other than committed savings), I move to a savings account. This way I start each month with a "clean slate", and you very quickly notice how much money you actually spend on nonsense.

Also, the best way I've found to save is to start using cash instead of swiping my card for everything. I never used to have cash on me, and once you start seeing money physically leaving your pocket, you think twice before spending.
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I like this idea :)
 
Pho3nix said:
Using I use it as a monthly bonus :D
Better sense that idea is. Have a direct link to that pic?
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And that is the problem with people in RSA: any extra cash they have left - after they already bought a car that they can't afford - they spend.

It was an article on fin24
 
Hamster said:
And that is the problem with people in RSA: any extra cash they have left - after they already bought a car that they can't afford - they spend.

It was an article on fin24
Click to expand...

My big issue and one I've seen with friends is no one is saving a dime except for the mandatory pension they take off their salaries.
Very few people that I know of save any money at all.
 
Dem I am going to agree and disagree with you all. Saving in itself is not enough, but saving towards a goal makes sense. Let me explain what I mean. You put money aside every month. You might get 5% growth on that money per year. Whoop-de-doo. That is peanuts. Now let's say you save to buy a scooter that will save you on buss fare every month, now that makes sense. If you want to start a business that might generate extra income, saving for that makes sense. You want to buy a house and put down a big deposit to cut down on the amount you have to lend, that makes sense.

If you save, you must have a goal/idea how to grow that saving. The guys that know call it "letting your money work for you". Just putting money aside and restricting your life makes no sense. You might as well throw the towel in now already, because if you can't save more that what the speed of inflation is growing at, it will be a fruitless exercise.

Let me give you a practical example. I bought a policy when I started working and in those days my car installment was R400/month for a brand new Renault 5. That policy paid out after 30 years a total of R36 000! I couldn't pay a years school fees with that money! Why, inflation and cost of living increases.

The best advice I can give you, save and start your own business. Start small. My parents should have told me that.
That is my life experience!
 
LottaFun said:
Dem I am going to agree and disagree with you all. Saving in itself is not enough, but saving towards a goal makes sense. Let me explain what I mean. You put money aside every month. You might get 5% growth on that money per year. Whoop-de-doo. That is peanuts. Now let's say you save to buy a scooter that will save you on buss fare every month, now that makes sense. If you want to start a business that might generate extra income, saving for that makes sense. You want to buy a house and put down a big deposit to cut down on the amount you have to lend, that makes sense.

If you save, you must have a goal/idea how to grow that saving. The guys that know call it "letting your money work for you". Just putting money aside and restricting your life makes no sense. You might as well throw the towel in now already, because if you can't save more that what the speed of inflation is growing at, it will be a fruitless exercise.

Let me give you a practical example. I bought a policy when I started working and in those days my car installment was R400/month for a brand new Renault 5. That policy paid out after 30 years a total of R36 000! I couldn't pay a years school fees with that money! Why, inflation and cost of living increases.

The best advice I can give you, save and start your own business. Start small. My parents should have told me that.
That is my life experience!
Click to expand...

Start your own business? Since most fail so it if you know what you are doing. Bad advice imo.
And everybody should have at least one goal - retirement. You're not gonna work forever.

Easy to beat inflation if you are willing to set aside short term goals like the next playstation and that new car because yours is three years old.
 
Yes start your own business. Yes of course it might fail. Please tell Steve Jobs and Bill Gates that! They build computers in a heavy competitive environment in a time that people had hardly heard of the internet. Boy, were they doomed to fail!

Retirement - Strange thing. Put away as much as you can for the first 40 years of your life (age 20 to 60) so that you can live more or less comfortably for the next 30 (60 to 80). Do as little fun things as possible while you are young, so that you have money when you are old but do not feel like doing anything!
 
LottaFun said:
Yes start your own business. Yes of course it might fail. Please tell Steve Jobs and Bill Gates that! They build computers in a heavy competitive environment in a time that people had hardly heard of the internet. Boy, were they doomed to fail!

Retirement - Strange thing. Put away as much as you can for the first 40 years of your life (age 20 to 60) so that you can live more or less comfortably for the next 30 (60 to 80). Do as little fun things as possible while you are young, so that you have money when you are old but do not feel like doing anything!
Click to expand...

huh???? :wtf:

When do you plan to retire?
 
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