We’d all love some extra money I’m sure, so here are some steps to literally find it. You should also take a listen to my interview with Tebogo on how he is saving more money.
Step 1 : Look at your bank statement
Look at your bank statement as well as your credit card statement for the past month and make a list of all automatic payments that are deducted (eg internet bill, mobile phone, insurance, Netflix, etc)
Step 2 : Analyze all payments
One-by-one look at each automatic payment and ask:
- Do I need this service / subscription or whatever it is?
- Do I need all the features I pay for? Can I downgrade at all or pay for less?
- If it is a store card, do you need the extra’s such as insurance, magazine, etc?
- If it is a debt repayment, how much interest am I paying? What must I do to pay it off?
Step 3 : Insurance
Pay special attention to your insurance payment. Look at your latest insurance policy or contact the company for it. Are the values correct? Now, get new quotes and see if you can find a cheaper option. In fact why not try Naked Insure (a brand I trust) for a super easy 90-second online quote!
Look at optional features you may have on any insurance, store card or debt policies. Perhaps you have the same benefits offered by different policies; in that case you can cancel some.
Step 4 : Look for wasted money
Look at your monthly expenses and take special note of the following:
- Eating Out / Take-Aways
- Entertaining at home
- Alcohol bought
Can you spend less on any of the above? Try for just 1 month to spend less than the previous month and you will see that you really can survive quite easily!
Important note is that what you save today should not be spent tomorrow, don’t feel tempted to spend your savings on other things. See when saving is not really saving.
Step 5 : Be strict with yourself
Make a list of every area where you feel you can save a little and be strict with yourself over the next month to actually do this!
Remember: You cannot measure what you don’t track!