Tomorrow is the only time that\u2019s too late to start saving money. As difficult as it might be, it\u2019s imperative to save. Every little bit helps. But how do you get started? We\u2019ve compiled an easy to follow five-step plan to help you put money away.<\/p>\n
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Step 1 \u2013 Know where your money goes<\/strong><\/p>\n Keep track of everything you spend. Make sure you capture everything, from paying your mortgage to the R5 you give the car guard. Once you have everything recorded, organise them in categories such as home expenses, entertainment or transport, and calculate the total amount you spend in each area. This will give you a clear overview of your financial situation.<\/p>\n Step 2 \u2013 Create a budget<\/strong><\/p>\n This step sounds more complicated than what it actually is. Now that you have a general idea of what you need to pay every month, you can plan ahead and measure your expenses against your income. Also remember to leave room in your budget for expenses that aren\u2019t due monthly, for example replacing your tyres. This will enable you to control and manage your spending habits.<\/p>\n Step 3 \u2013 Plan to save<\/strong><\/p>\n Saving money is difficult as there is always a hole that needs to be filled. The best way to overcome this obstacle is to make room in your budget for your savings and then plan around it. Set up a debit order that transfers money into your savings account when you get paid. Every little rand you save is better than nothing, but try to save 10%-15% of your income.<\/p>\n