Saving is an important part of any strong financial plan. From allowing you to invest in insurance products to suit your changing needs to help you establish an essential emergency fund, saving is a key step towards financial independence and increased wealth. Despite this, many working professionals find it hard to save – either in the face of rising costs or because they quickly grow into their salaries.
We’ve discussed some of our top savings tips here and here. And because we just can’t say enough about the importance of saving (and the financial freedom it will afford you in the long term), in this post, we have three more money saving tips for you.
Money saving tips for working professionals
1. Set up an automated savings plan
Talk to your financial adviser about investment products that help to promote and capitalise on savings. Also, talk to your bank and set up a debit order that goes off every month and places a set amount of money in a different account from the one you use daily. All the better if this account has a fixed term or is a call account, meaning it is not immediately accessible. Many people try to save the money they have left over in their cheque account at the end of each month – if there’s anything left! – which is a mistake. If you force yourself to save by making savings an automatic action at the same time each month (preferable when you receive your salary), you will be more likely to save and you’ll be surprised how you soon won’t miss that amount.
2. Surf smart
From home to the office to the shops, we go online almost everywhere, whether it’s to work, do banking, or engage in social media. Even with a data plan, surfing the internet on a mobile device can be a costly exercise, adding to your mobile bill at the end of every month. Think about how you go online – do you have uncapped ADSL at home? Can you connect to a local wifi network when you are out and about? Can you manage without your online apps if you’re not in a wifi-friendly zone? Go off the grid when you can and save that little extra for when you really need it.
3. Change the way you have fun
Love working out but spending a fortune on your gym membership? Join a running club for less or exercise outdoors or at home. Watch movies on DSTV or Netflix (you’re paying for these too) rather than going to the movies. And entertain at home when you can – this allows you to still be social but without hefty restaurant and bar bills. You’ll be surprised how much you save when you start having your coffee at home instead of at the local cafe. The point is not to reduce your fun (that’s one of the most important reasons we work hard for our money) but to re-imagine it so that you can save for financial security and bigger, better adventures in the future.
Looking for a reputable independent financial adviser to get you on the right track with all aspects of your financial plan? Talk to a TRG team member. As professional independent advisers, we offer a range of financial services, from insurance to investment, and we can help you manage, grow, and protect your wealth.