#Women’sMonth: Savings tips for you and the family
Attention all women: Here are some strategic habits you can implement which will benefit not only you, but also your family.
Not too long ago, men used to go out earning the family’s income while women stayed at home and looked after the house and kids.
But times have changed. Today many women are career professionals and leaders while also being mothers, and the cost of living has meant households with two or more working adults are the norm. Furthermore, single parents have the dual responsibility of earning an income and raising children.
Women are by nature nurturing and often think with their hearts, putting the well-being of their families first. Homemakers, known for their support and love, women are also vital to the sustainability of families and need to think strategically as they play crucial roles in the finances of most households, often driving the daily and monthly spending decisions.
Kirsten Reynolds-Wood, Brand and Marketing Executive for online lender, GetBucks, said there are a number of proven strategies for building a savings culture and that women who implement these strategic habits will go a long way towards building security and wealth in the long-term, which will benefit not only them, but also their families.
1. Beware the rainy day: build an emergency fund
You build an emergency fund by putting away a portion of your earnings every month in case of an emergency. You do not have to wait until you feel you have a bigger salary. In fact, you mustn’t wait. You can start by saving small, as the small amounts add up and come in handy on a rainy day.
2. Time flies: start saving for retirement as early as possible.
Women are likely to live longer than men and this means they need to have enough money for a longer period of time after retiring. The earlier you start saving for retirement, the more you will be able to add over time to your retirement savings. The benefits of starting to save for retirement from an early age include being able to support yourself during retirement and maintaining a standard of living you are used to.
3. Beep beep: look forward to the automatic payment SMS
Go to the bank today and set up an automatic transfer from your bank account into a savings or investment account. Set it up so that it goes off right after you are paid. Doing this will ensure that your spending money and savings money never mix, and you can go about your month without worrying. Then, when you get the message alert every month, you can smile, knowing you are building up your savings.
4. Failing to plan is planning to fail: draw up a budget
A budget is vital if you want to get into the habit of saving. Knowing what you earn and what you spend every month not only gives you peace of mind, but it allows you to plan. Being short of money near the end of the month is one of the main reasons people dip into their savings to make ends meet, or worse, don’t save at all.
5. Take the pain, enjoy the gain: save extra money like refunds and bonuses
When Sars refunds you at the end of the tax season, or you get an unexpected refund or rebate, avoid running out to buy the latest flashy shoes. The same applies to thirteenth cheques and bonuses. Try to keep your December shopping and entertainment within your monthly budget, and save the extra money. This will have a very positive effect on the overall balance of your savings and motivate you to save even more.
6. Timeout: take a breather for 48 hours
We all know the feeling: you need something and you need it now. But before you go to the shop or order online, make a promise to yourself right here, right now: whenever you decide you need or want something badly, enact the 48-hour rule. Take a breather and wait two days. Allow your mind to think over a purchase and whether or not you really want to spend that money.
7. Set goals, then score: short-term savings plans
Do you have short-term goals? The following tips will release more money to save for short-term or long-term goals.
• Lower your expenses. Instead of spending on takeaways or the office canteen, pack your own lunch. This will save you a lot of money over time
• Stop smoking and drink less. A R30 box of cigarettes a day equals R10 080 spent in one year. What could you do with that money?
• Eat out less, and socialise at places where you don’t have to buy food or drinks.
• Buy in bulk, it all adds up.
8. The big picture: our habits define us
Keep your eye on the big picture. Whenever you decide to spend money on something, ask if it will improve or hinder your goals for the life you want to live. It doesn’t mean that you shouldn’t have a nice night out or buy a special gift now and then, it just means that you ask yourself whether, in the greater scheme of things, you are cultivating the kind of habits that will build or destroy your dream.
9. Pay your debts and watch your credit score
Check your credit score and pay all your debts. A clean credit record will help you get the best interest rates and you will pay less interest on credit cards and loans. GetBucks offers customised credit reports where you can get access to information from the local credit bureaus. It also provides continuous feedback on credit score movement, gives tips on how to improve a personal credit score and provides education based on spending habits.
10. Invest: building wealth over a lifetime
Building a savings culture means that you are more likely to stick to the single most important thing you can do for your retirement and long-term wealth: investing. Make sure to visit a financial advisor. This is a professional who will help you manage and invest your finances so that you can reach your long-term goals and build up your wealth.
11. Control your finances or they will control you
Financial freedom will come to the woman who actively controls her finances. Be in control of your money and it will never control you.
Do you perhaps have more information pertaining to this story? Email us at randfonteinherald@caxton.co.za (please remember to include your contact details in the email) or phone us on 011 693 3671.
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