Save money?! Hah…few things are harder than saving money. You, me, and the rest of the world can probably all relate to that statement.
We’re a consumer culture at heart, with most of us looking at what we can buy at the next big sale. In fact, Black Friday is now one of the biggest retail months of the year, with many businesses relying heavily on the outcome of Black Friday to boost their financial profit for the year.
This consumer culture is coupled with the fact that banks in South Africa have, for much of the past, taken advantage of consumers. They charge exorbitant fees for very little effort, knowing we need to store our money somewhere.
Even the “disruptor banks”, with their lower monthly charges and variety of rewards programs, often end up costing you more than you think.
Fortunately, things are starting to look up for us, the consumers, when it comes to saving and banking in general. Over the last decade, there has been a major shift in consumer-focused fintech practices, that we can take advantage of to help us save money.
Here are a few ways you can save money.
1) Digital-only banks
Until recently, the idea of a digital-only bank was simply unheard of in South Africa. Luckily for consumers, times have changed. Now you can choose from fully regulated and accredited digital banks like Thyme Bank, Bank Zero, and, to a lesser extent, Discovery Bank that can save you money each month.
2) Use the tools!
Along with digital-only banks there are a bunch of tools you have access to on your smartphone that lets you save money. That can be anything from budgeting tools to investment apps to crypto-currency wallets. Get creative in how you save money, and use the technology available to make the most of it.
3) Save money, tax free!
The easiest way to save money is to pay less in tax and let’s be honest, who doesn’t want to pay less tax? South Africa now allows us to invest up to R36,000 per year with zero tax charges. Usually, this kind of growth would trigger a CGT (Capital Gains Tax) event which would normally cost you money.
So, that means if you put R10,000 away at the start of the year in a TFSA (Tax Free Savings Account) invested in offshore equities and you get 30% growth, you won’t pay a single cent in tax if, and when, you withdraw that money.
4) Shop like a boss
Or, more importantly, like a mom! Don’t just go to the shops, wander around and throw things in your trolly. Sit down, go through what you have in the fridge, freezer, and cupboard, and plan out what you need. Then only buy those things… You will immediately cut out those extra expenses that eat into your funds, meaning you can save money even on a tight budget.
5) Check your fees
Not only bank fees, but your car insurance, house insurance, medical insurance, cell phone contract – anything you pay for on a monthly basis. Take the time to do a little check on what you’re paying for each item, and then investigate alternative suppliers to see if there’s a better deal out there for you and your pocket.
If you don’t incur any penalties for changing, you should try to get the best deal possible for everything you’re paying for!
Read more how you can improve your credit score.
