South Africa celebrates July as National Savings Month, but the sad reality is that many people in the country are not savers.
According to Justin Asher head of strategy and marketing at upnup, South Africa has a very poor savings culture, and saving money has not been a huge priority for people.
While there are a number of factors that stop people from saving, such as the cost of living and rising interest rates, debt is a major aspect that needs to be factored in as a reason that people are not saving money.
However, debt should not stop you from saving money.
Here are some tips to help you start saving even if you are in debt:
Budget
Have a budget that takes care of your expenses and allows you to tame your desires by living within your means. Ensure that you have created specific columns in your budget dedicated to debt and savings.
“When you budget, you know exactly where all your money goes, where you can make adjustments to save even small amounts, and also how to effectively save and leave enough money for unexpected expenses and emergencies, says Sebastian Alexanderson, founder and debt counsellor of National Debt Advisors.
Speak to your financial adviser
A financial adviser can help people craft a financial plan to take control of their finances. Your adviser can guide you on how to create a plan that includes debt repayment and savings goals.
Downsize
If you find yourself in a debt trap, consider downsizing your house or car, if need be. Downsizing can help you decrease your costs and save money which can be put towards your savings fund.
Start a side hustle
If your debt is greater than your income, you need to explore multiple streams of income to supplement your current income, including starting your own side hustle. By starting a side hustle, you are creating another source of income, which will increase your savings contributions.
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