If you’re reading this blog, chances are fair you’re looking for ways to either increase your income or save more of your current income, for long-term financial stability. Sometimes increased income doesn’t come immediately, but here are 5 cost cutters that you can implement today.
1. Fast food
One of the other blogs on this site spoke about how not spending R50 a day on fast food equates to a potential savings of over R13,000 in a year. Make a little extra from dinner the night before, and take it with to work the next day. This is a major savings.
2. A new car
Traditional wisdom has it that a new car devalues by 25% the minute you drive it off the showroom floor. Even if you saved for it diligently, a new car is what Robert Kiyosaki refers to as a ‘doodad’ – a money-wasting expense that just eats up cash. If you just have to drive a Beemer then consider a demo model or a good second-hand one.
3. A bond for a house
What? This is ridiculous, you might say. A house is a necessity. Yes, but do you have to buy the most expensive one you can afford? A bonded house could end up costing you almost 3 times what you bought it for. People have lived in cheaper pads and saved money until they could afford to pay cash for a better house. It sounds creepy, but consider a repossession – a house that the owner could no longer afford the bond on, precisely because it was much more expensive than s/he realised.
4. Cell phones
Those glittering head offices along the N1 in Jozi (MTN, Cell C, Vodacom) did not get there without some major tom, and Vodacom has just pushed up their rates. You could save between R2,000 and R5,000 a month just by being disciplined with your phone. Cap or switch to pre-paid. Yes, it’s more expensive but easier to control.
Babies are expensive, as are school fees and daily living costs. Sure, by all means have a family, but you’ll need to watch those rising bills as you do so. Make sure the family buys into the savings plan. Otherwise it’s vac jobs for all kids over 16!