#MotivationMonday: Tips on how to save money during tough times

Challenging economic conditions often come with a lot of uncertainties, and consumers will find themselves hard-pressed to save.

But it’s still important to make room for saving and continue practicing prudent financial habits.

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Eunice Sibiya, Head of Consumer Education at a banking institution, said that with the continuous rise in basic living essentials such as food and electricity, consumers need to re look their budgets and cut off unnecessary expenses in order to avoid over stretching their finances.

“As the cost of living escalates necessary lifestyle adjustments must be made to ease the pressure on finances.

“These may involve having to cut unnecessary expenses on non-essentials such as entertainment.”

Sibiya shared tips that will help you cut unnecessary expenses during tough times:

Review your bank statement:

Your bank statement is the first financial document that you have to look into when you want to cut expenses.

Therefore, you need to review your statement with great attention because it can help you identify expenses that may be causing leakage in your pocket.

Once spotted, act quickly by getting rid of such expenses.

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Create a solid budget plan:

Look at your budget plan to determine where to cut off unnecessary expenses, as well as where you need to allocate more funds.

This will give you a good indication as to where you need to start cutting off.

Define needs vs wants:

Knowing your needs VS wants is crucial in ensuring you cut unnecessary expenses.

Once you have defined your needs, it will be easier for you to drop such expenses, and channel the funds towards saving or creating an emergency fund.

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Minimise credit:

More often, credit eats up a reasonable amount of your income.

Therefore, during these challenging times, it will be in your best interest to desist from taking on more credit to create more room for saving.

Live within your means:

While this might be challenging for a lot of people, it is advisable to spend less than you bring in a month.

Any additional expense that is not from your income will potentially get you into debt which will further derail you from meeting your savings goals.

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“One of the best ways to avoid unnecessary spending is to translate the Rands spent into the hours you worked to earn that income. If you spend what you earn a day on impulse purchases, it will be best to relook your spending behavior as this will seriously set you back from achieving financial freedom,” concluded Sibiya.