Back to being "Suinig" or Money wise

"Suinig"... that's what they use to call that old uncle of yours. You know the one that did not want to spend money on anything, the one with furniture from the 1970's. Fast forward to modern times the new PC word is frugal. Trying to find a middle ground between "Suinig" and frugal can be hard sometimes. So let's look at some simple money saving habits in these modern times.

1. Automated Transfers By setting up automatic transfers from your current account to your savings account each month, the money will accumulate over time without any additional work on your part. This technique can be especially useful when your savings accounts are dedicated to specific goals, such as establishing an emergency fund, going on a vacation or building a down payment. Debit orders can be easily set up via banking apps.

3. Make a grocery shopping list. With just a little work before you go to the grocery store can go a long way toward helping you save money on groceries. Check your cupboards and make a shopping list. This will help to avoid impulse buying something you don't need. Join loyalty programs to maximize your savings as you shop. In exchange for sharing your phone number or email address, your local store’s loyalty program might offer additional discounts. If you use a cash-back credit card, you could earn extra cash back on grocery purchases. Some cards offer as much as 5% or 6% cash back, but you’ll want to be sure to pay off your bill each month to avoid paying interest and fees. Consider delivery services. Not only convenient but could save you some money and time. Especially on those small daily items.

4.Cut out non essential spending. Easier said than done. What qualifies as essential? For instance buying coffee from a coffee shop on way to work everyday. Invest in a Travel mug and take coffee from home. Along with a packed lunch? Over the course of a month these small savings do add up.

5.Commuting to work. Needless to say driving to work and back everyday can mount up quite a fuel bill. The most economical thing to do is to carpool with other commuters. Reach out to fellow workers and use social media to start a carpool or join existing ones. Most petrol stations offer loyalty programmes or partners with existing brands to offer either cash back or loyalty points. Consider accumulating these points and cash in once a year.

6.Shop around This is quite a simple and easy task. Don't accept any deal offered to you. Look for the best and don't be afraid to play providers up against each other. For example your cell phone contract, insurance, home loan, medial aid and internet providers. Shop around to find something that offers value to your needs. Don't be afraid to switch if it's possible. Credit history is pivotal in getting a good deal.

7. Try and adopt a necessities-spending-savings plan. Most financial institutions will recommend the 50/30/20 budget for money management. basically this means devoting 50% of your after-tax income to necessities, 30% to wants or spending and 20% to savings and any debt payments. Obviously if one of your allocations exceeds these percentages, you can make some adjustments elsewhere.

8. Try not to use High Interest credit. Wherever possible minimise the use of high interest credit like Credit Cards and Personal loans unless the are absolutely needed. These facilities provide easy credit with the catch of charging high interest.

9.Car Finance Cars are essentially part of our life. Cant live without them. Buying a car on finance can be very expensive. Where possible avoid Residual or Balloon payments options. Or enter into these agreements with a plan. Because after loyally paying car installments for 5 to 7 years you might still owe 20 to 50% of the initial finance amount. Also interests on vehicle finance is very high. For example vehicle finance on a R100 000 results on around R45 000 interest.

Finally With all this said, saving money is a never ending process. There is no master plan and this is just a general guide. Whatever works for you and your family will be a process evolving over time. Determine what your needs are, keep an eye out for bargains and be disciplined in your approach. Check out these links for more information and savings tip.