PROBIZ International - Vol-1 Probiz File final | Page 49

Set aside some
money each month for
planned expenses; divide
that predicted planned
expenses amount by 12.
For example if
you plan to spend
5729.79 per year as
a car expense, simply
divide it by 12 and plan
to save 439.41 per
month.
Save money for
emergencies and start
by aiming to save at
least one month’s entire
salary. Aim to save more
but do this slowly and
without self-created
pressure; work towards
three or even six
months salary saving is
recommended.
Save money for goals
in this category; that
overseas college, new
or used car to call your
own, a dream house, or
that get-away vacation.
Use the savings
account for long term
planned investments
for the future as well.
This will be easier to
save since the money
is not in the wallet or
home and this ‘farther
to reach.’
Look at areas where you
can actually spend less
money
Things of course
like car payments,
mortgages and
instalment loans can’t
be changed and utilities
are averaged.
Do simple things
such as use less water
where you can, switch
off the computer and
lights when not in use,
buy generic branded
food items rather than
the expensive branded
ones, and brown bag
lunch to work rather
than eating out on a
daily basis. charged are much
higher-use the ATM for
emergencies.
Phone long distance
at off-peak timings and
on Fridays and holidays.
Use the computer
to keep in touch. You
will see a substantial
savings on your phone
bill this way and be
able to keep in touch
regularly with friends
and family. The best idea is to
avoid carrying the credit
card when going to
malls or shops, it helps
to resist the temptation
to ‘charge now and pay
later’ mentality.
Eat out less, take
lunch to work and set a
limited number if times
to eat out in the month
Try ‘car-pooling
or ride sharing’ with
someone near to work
and share the petrol
expense. Not only does
this help save money,
but contributes to the
environment with one
less car on the road and
gives you a chance to
relax rather than fight
traffic at rush hour day
after day.
See how much money
you are spending on
credit card payments
How many different
credit cards are you
paying a minimum
balance on? Rather than
continue to add finance
charges up the sky,
use the handy ‘balance
transfer’ program many
banks. Use and pay only
one total bill at the end
of the month instead.
Check which credit
card gives the lowest
APR (annual percentage
rate) as well as the
highest credit limit,
alongside no annual fee
for life.
Avoid cash
withdrawals on your
credit card as the
interest and the fees
Keep a limited
amount of cash in case
of emergencies but not
so much that you are
able to splurge at the
last minute on a high
ticket item you may not
really need.
Be a smart shopper
See what things you
have been buying that
you don’t really need.
If something is on
sale and you use it buy
more of it then stock up
on it rather than paying
full price.
Don’t go to the
grocery store when you
are hungry as you will
be more tempted to buy
food items you may not
need.
Always compile a list
of items before going to
the store to ensure you
buy what is needed. Buy
economy sized things
where possible to save
money and have more to
use.
Avoid calling the
downstairs corner
grocery shop every time
you run out of an item-
though it is convenient,
it also creates big
accumulated bills. Go
down to the shop in
person and pay cash.
Usually a sweater
will cost less at a sale
just before the summer
as will that swimsuit
just before the winter
sales. Be a smart
shopper and note the
days of sales and shop
at these places only
when there is a sale.
Small savings equate to
big payoffs:
Any small monetary
gift you receive, place
a set portion of it
aside (depending on the
amount) even if it is
95.53.
Keep a ‘piggy bank’
or empty jar for loose
change and watch the
spare change turn
quickly substantial
amount from small
amount emptied out of
pockets, from the floor,
or in the car at the end
of the day.
After all of the easy
and valuable lessons in
budgeting what does it
all boil down to? Three
reasons to save for a
rainy day:
Emergency funds
to prevent family crisis
have a revolving savings
to cover the cost of
‘now and then’ expenses
such as insurance
premiums, taxes, gifts
and other infrequent or
unexpected items.
Retirement/long term
goals such as major
purchases such as a
home or education for a
college overseas.
Changing brands,
choosing economical
sizes, buying generic
items instead of brand
names, and leaving
the house without the
credit card make a huge
difference in the long
term spending habits
and will help you save
money also. Set small,
but steady goals and
make all goals realistic.
Saving money can be a
lot easier than you think!
August 2018
49