Saving is the first step to building wealth and obtaining true financial freedom. But how do you start saving when you have little money left to save?
One of the key mistakes that we do is wait for “spare money or extra bucks” to appear in our fortnightly income, so we can save. For most, that day never comes, and building a savings remains an unchecked task on the list of financial “To Dos.” This month, we give you 5 Simple tips to help you SAVE, even on a limited Budget.
1. Identify a goal
Define your purpose for saving, whether it’s buying a car or saving up equity for your first home, planning for a baby, or simply earning the financial independence to live the life you want. Start by making a plan; know how much you earn, what you spend on and how much you can put aside to save. Setting your goal in stone will keep your “eye on the prize” when other temptations to spend arise.
2. Keep it out of sight
Start by paying yourself first and putting a portion of your pay (even if it’s small) directly into a savings account before you are able to use it.
Payroll Deductions: Arrange this with your employer facilitate payroll deductions, before your pay hits the Account.
Standing Orders: You can put a Standing Order on your Transaction Account, so there is an automated deduction from your account to your nominated Savings Account.
3. Get paid for saving
Opening a savings account has become simple and affordable to manage. There are various options to save. Look at a savings account that is able to lock away your money, earn interest but also has the flexibility to allow you access to your funds in case of emergencies. It is better to be paying yourself and earning an interest than repaying a debt.
4. Contribute as often as you can
Saving regularly is key to building your savings balance, but finding small opportunities to save will also help you to gain momentum and keep savings climbing. Review your fortnightly expenses, and see if you can cut back on a few expenses like socialising and sharing a few drinks with friends or spending money on betelnuts and cigarettes.
Do the math: We spend K5 per day on betelnuts and K5 per day on cigarettes, maybe more. In one year, you will have spent K10 x 365 days = K3,650.
It is better to cut back every now and then. Take the proceeds of your eliminated expenses, and put them right into savings.
5. Open a BSP Plus Saver Account
BSP’s Plus Saver Account is an optional account that can be opened easily if you have a BSP Kundu Account. The Account can be linked to Mobile and Internet Banking. You can view your Balance and Account Statements any time. It does not have a Bank Card linked to the Account, which means that you cannot access your funds via an ATM or an EFTPoS. But of course, if there’s an emergency and you need extra funds from your Plus Saver Account, you can use Mobile Banking to transfer funds from your Plus Saver to your Kundu Account to use.
Funds can also be transferred via Mobile and Internet Banking from your main transaction Account to your Plus Saver for Free. A tiered interest plan is paid to your savings balance. This simply means, the more you save, the more interest is paid.
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