5 Smart ways to Save in South Africa

Saving more money is something we’d all like to be successful at. Not just because we’d have more money (which is just the best), but because it says something about our ability to think long term, commit to a goal, and say ‘no’ to things that aren’t necessary. The problem with this great idea is that, with costs rising all around us, where do we find the extra Rands to put aside every month?

It takes a few smart moves to save in this economy and that’s why you need these super smart tips. Check them out and see what works for you. Remember, every little bit counts.

1. Put it in black and white (or other colours)

Some people prefer using a budgeting app, others like to keep it old school and put it down on paper, and there are a rare few who actually like spreadsheets (oh, the horror). However you prefer to create a visual aid into your expenditure, the few hours it’ll take you to go through your statements and compile a list of regular, monthly expenses will be well worth it.

Once you know for sure what’s coming in and what’s going out (and not relying on some guesswork, which can be misleading), you’ll have a better idea of where you can cut down or what you can cut out completely.

2. Whittle down your debts

It might seem contradictory to the whole savings strategy, because you’re actually paying out more, but remember… This is a long term goal.

This tip includes a 2-fold strategy. The first step is to pay off your existing debts, like clothing accounts, credit cards, student loan, and other outstanding bills. The second step is to consider cancelling contracts you don’t use, like DStv or gym memberships. While we’re on the subject of cutting back on your costs, then this is the right time to mention cutting down on ‘silly debt’ which includes paying for unnecessary things, like restaurant meals and shopping, on credit.

3. Save, tax-free

First of all, any savings account is a good idea for obvious reasons. But you could go next level and get a tax-free savings account. This type of account gives you flexibility (because you don’t have to commit to any future contributions), you can withdraw from your savings at any time (although you shouldn’t, because you’re saving), and if you do need to make a withdrawal you’ll get the whole chunk of change, interest and all.

4. Stop order your savings

So, you’ve examined your budget and spotted great places to decrease your debt and save cash. This undoubtedly will have brought you to an affordable savings amount that you can stash away. And to make sure that this amount actually makes it to your tax-free savings account, set up a stop order. This way your bank will automatically deduct this from the account your salary is paid into every month and your savings will steadily grow.

5. Get cheaper insurance

Insurance is 1 area where you can save a heap of money. What you want to do here is compare quotes from top insurers in South Africa to get the cheapest price. In fact, you could benefit from a relatively new thing in the insurance industry called ‘decreasing premiums’. King Price is the only insurer in the world (as far as we know) to offer this type of comprehensive car insurance to help people cut down on costs. Their reasoning is that your insurance premium should reflect the accurate value of your car and, because your car’s value depreciates every month, your premium should decrease, too.

If you want to get a head start on your savings strategy by cutting down on your car insurance costs, then get a commitment-free quote from King Price by clicking here.