Saving can be tough, especially when you experience the month-end phenomenon of too much month at the end of your money.<\/p>\n
\u201cThe closer we move to year end, holidays and festive season spending create additional pressure on an already stretched budget,\u201d said Mellony Ramalho, African Bank\u2019s group executive: sales, branch network.<\/p>
\u201cWhat we need to keep in mind is that we want to become masters of our future and this can only happen through financial smarts.<\/p>\n
\u201cWhile setting a portion of our salary aside may seem impossible, sacrificing a few luxuries now will yield fruitful benefits in the future.<\/p>
\u201cThere\u2019s nothing wrong with dreaming big, but we shouldn\u2019t lose sight of the importance of healthy and sustainable savings.<\/p>\n
\u201cMaxing out your budget now will definitely create added pressure next year,\u201d said Ramalho.<\/p>\n
She said that while this time of year can put the pressure on in terms of finances, it also offers some thinking and planning time as most people take time off work.<\/p>\n
\u201cTime to stop, think clearly and have a good, hard look at your financial situation,\u201d she said.<\/p>\n
She suggests starting with the following:<\/strong><\/p>\n \u2022 Understand what you\u2019re working with:<\/p>\n When it comes to your finances, it is important to take note of what you\u2019re working with.<\/p>\n Do you have one salary, are you combining two salaries from two people, what are the monthly responsibilities from which you can\u2019t break away?<\/p>\n If you\u2019re looking to formulate a budget, take your net salary (after tax) and subtract your monthly debit orders and payments – these could be the monthly instalments on your credit card, personal loans, or cellphone bills.<\/p>\n <\/p>\n ALSO READ:<\/span><\/p>\n How to dress like a celebrity, on a budget<\/a><\/p>\n Become a better saver \u2013 top five savings tips<\/a><\/p>\n <\/p>\n Once you have subtracted these amounts, take a look at your responsibilities and dedicate an estimate of what you need to spend on each responsibility per month.<\/p>\n Subtract the responsibilities, and your possible savings lie in what is left over.<\/p>\n Keep in mind the fact that saving 10 per cent of your net salary is an ideal starting point.<\/p>\n \u2022 Live like you\u2019re earning less:<\/p>\n If you decide to set 10 per cent of your earnings aside every month for the purpose of saving, it is important to remember that you will need to live like you\u2019re earning 10 per cent less to ensure that you don\u2019t dip into your savings.<\/p>\n While it might require some sacrifice, living a more frugal lifestyle now will ensure that you are able to have better sustainable financial freedom in the future.<\/p>\n \u2022 Practice the art of saying no:<\/p>\n While a new suit, handbag or car may seem like a good idea now, it is important to remember that you may have to spend months or years paying it off, which can have an effect on your cumulative savings.<\/p>\n To ensure that you are able to save money, you will need to ensure that you practice the art of saying \u2018no\u2019 when temptation calls your name.<\/p>\n \u2022 Stick to your goals:<\/p>\n Do you dream of buying your own home, pursuing your studies or starting a family?<\/p>\n Perhaps you need to save up for a deposit on a loan for a new car or would like to pay off your debt?<\/p>\n If you\u2019re looking for motivation to save your pennies, it is important to decide on a financial goal and stick to it.<\/p>\n Not only will this ensure that you find the motivation to save your money, but it will also ensure that you stick to your goals to achieve a quicker result.<\/p>\n \u2022 Plan for impulsive spending:<\/p>\n While saving is imperative to ensure a more stable financial future, it is also important to take note of the fact that impulsive spending does happen \u2013 whether it\u2019s on a new pair of shoes, a holiday or a lavish dinner.<\/p>\n Taking ownership of the fact that spontaneous spending does happen will ensure that you set aside a small sum of money, allowing you wiggle room in which to enjoy life as it happens.<\/p>\n \u201cSaving isn\u2019t always easy, so make sure you speak to a financial advisor if you are struggling,\u201d said Ramalho.<\/p>\n <\/p>\n Have a story?<\/strong><\/p>\n Contact the newsroom by emailing: Melissa Hart (Editor)\u00a0<\/span>germistoncitynews@caxton.co.za<\/a><\/strong> or Leigh Hodgson (News Editor)\u00a0<\/span>leighh@caxton.co.za<\/a>\u00a0<\/strong>or\u00a0Kgotsofalang Mashilo (journalist)\u00a0kgotsofalangm@caxton.co.za<\/strong><\/a><\/p>\n Remember to visit the Germiston City News on the following social media platforms:<\/p>\n Facebook<\/a><\/strong><\/p>\n Twitter<\/a><\/strong><\/p>\n Instagram<\/a><\/strong><\/p>\n YouTube\u00a0<\/a><\/strong><\/p>\n Or add the GCN on\u00a0<\/b><\/span>WhatsApp 079 406 1181<\/strong>\u00a0<\/span>or\u00a0BBM (BBM Pin: 7F102137)<\/strong>\u00a0<\/b><\/span>today, to get all the latest news.<\/p>\n Catch-up on more local news with our sister newspapers\u00a0<\/span>Bedfordview Edenvale News<\/a><\/strong>,\u00a0<\/span>Alberton Record<\/a><\/strong>\u00a0and\u00a0<\/span>Kempton Express<\/a><\/strong>.<\/p>\n