6 ways you can save money on your spending

In the midst of the economic crisis caused by the lockdown, it is essential to save money, but what few people know is that, on average, 25% of the monthly expenses of every person or family are superfluous and/or unnecessary.

The lockdown in South Africa determined the closure of all types of businesses, with only food, fuel, pharmacies and medical services stores remaining open. Gatherings of people were banned, as well as movement between cities without authorization – and all this heavily impacted the economy of each family that had to cut and save certain expenses.

After all, we need to do a thorough analysis of the lockdown and how you can be selective about which habits are interesting for you to avoid unnecessary expenses. Spend on the things that really matter to you, but try to save money as much as you can on the rest.

Check the complete list here to save money

We have prepared a learning guide with 6 tips for you to save your money based on the learnings that the lockdown brought to our reality. Let’s start the list:

1. Learn from Lockdown

The lockdown may have brought many people a new and surprising lifestyle that was certainly not the best. Many families stopped spending on things they would like, in order to save and save money for the need established in the country.

Also, this scenario showed you the things you can live without and the things you need to live. Now, a tip: do you want to know in practice the lessons that the lockdown brought to your reality today?

Then make a list of all the items and services you ran out of during the lockdown. After that, read what are the things you can cut out today, the things you can cut back each month, and the things you can cut permanently.

Also, write down how much you will spend less, the amount you will save money by making these cuts. Make this very clear and look whenever you want something you don’t need in your life. Always prioritize the list of essentials.

2. Make a financial diagnosis

To know how to reduce or cut expenses, you need to know everyone you commit – not just the biggest and most expressive ones, but especially the smaller ones that are taken without much attention.

Make a diagnosis of your financial life by writing down for 30 days everything you spend, separating by type of expense, including coffee and tips. Thus, you will see a very different reality from what you imagine;

Also remember to keep your bank and credit card statements online to see what you are paying and not using, in addition to analyzing whether everything you are spending adds value in your life.

3. Be careful with your credit card and overdraft

One of the problems that people make the most when it comes to financial life is the fact that a large part of people consider credit card and overdraft limits as part of their income, which is a big mistake.

For you to be able to reduce your expenses, cut your costs and avoid getting into debt with unnecessary expenses, be aware that these are credit options, that is, ways to buy something now and pay later with interest. Keep your credit card limit equal to, at most, half your income.

4. Save money on basic bills

Day-to-day expenses are something that can weigh on your budget and put you under pressure. Electricity, water, and gas at home should always be looked at with others and taken care of. After all, you can cut expenses just by turning off lights and turning off the TV when no one is using it. These are simple everyday attitudes that can simply reduce your expenses and bring you more financial breath.

5. Go to the market with a list

This is one of the worst mistakes that people neglect and make on a daily basis. Most people go to the supermarket without previously deciding what they are going to buy and end up taking something they already have or even taking more products than necessary, causing a loss.

Research prices, define your shopping list and go to the supermarket—this simple attitude of carrying out planning is very important to cut unnecessary expenses.

6. Have dreams

To be able to cut unnecessary expenses effectively, you need a reason, a strong reason to actually make it – and don’t just think about doing it to avoid financial problems, as happened in the lockdown, but also to make your dreams come true.

When you rescue dreams, what you really want to conquer, immediate consumption loses strength. Establish at least three dreams (one short, one medium and one long term), budget your costs and see how much you need to save money monthly to fulfill each one.

This way you will be prioritizing what has true meaning in your life.

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