Top tips for making your money last longer
05 Mar 2020
Managing your money wisely doesn’t start and end once you’ve bought a big new item like furniture, a house or car, here are some tips on how to think money-wise all the time, so that you’re able to live more comfortably and plan for your future.
Dreaming of a new TV, home or car? This can help you afford it
It’s only at the beginning and it’s been a tough year so far. You’re working harder but your money isn’t going further and the car you’ve been hoping for seems completely out of reach. Don’t give up. You can afford that treat by simply managing your money better. Here’s how:
Tailor your budget for safe spending: create a budget for your expenses. Before you splurge, make sure you pay for all your necessities such as your home loan or rent, insurance (life and funeral cover), food and health care (this should be about 50% of your take-home pay). Then, set aside 30% for luxury items. Remember that any kind of debt should be also be serviced first, before you can spend on luxuries.
Save up for larger items: before you treat yourself, make sure you have enough for the deposit and monthly payments. This will stop you from incurring interest and debt. If you don’t have enough, put aside money each month, to save towards your goal. It is better to save and buy rather than to get into debt and end up paying more for the item than it's worth.
Separate your spending money from savings: make sure you set aside money every month for savings. This will help you to invest for growth and provide for your future.
Wait for a sale or buy used items when you can: in this way, you’ll save.
Pay for luxuries with a side income: nowadays, many people are turning to alternative sources of income to supplement their money. This is an ideal way to pay for occasional luxuries, rather than drawing from a constrained salary.
Know when to stop spending: remember that luxuries are an occasional treat. Know when it’s time to stop spending.
No matter how little, put aside some money each month for an investment, insurance, retirement plan or savings plan. This will help you to reach your financial goals and provide for your future. There is always more to spend on than there is money, so we have to be wise about how we spend the limited finances we have.