South Africa’s First National Bank (FNB) head of consumer education Eunice Sibiya says there are a few tricks that one can use to stop the temptation of overspending or dipping into hard earned savings to fund unnecessary expenditures.
She offers the following tips on the topic:
Only take what you will need
If you are not going to pay beneficiaries, bills or top up on airtime and electricity, it is advisable that you take only one card when going out (debit or credit card). Carrying many cards at one time can be very tempting when you walk past an item, as you have the power to buy it here and there. You can change your card limit to ensure that you do not overspend.
Move savings out of harm’s way
Make sure that your savings are separate from your transactional account. The temptation is greater if you keep your savings and your day-to-day money in the same account. If you find that you are still dipping into your savings, it is time to take more drastic measures. Put your savings away into a less tempting account.
This will make it far harder to dip into savings on a whim and will keep your savings for the goals you have actually planned, such as that holiday at the end of the year.
Avoid places that will cause you to spend
One of the best ways to avoid spending needlessly is to avoid going to places where you know you can’t resist. If your friends like to meet at the shopping mall on the weekends for coffee, and you know that you are prone to dash into a store there, change that habit.
Ask to meet them at a coffee shop away from your favourite stores. Same goes for going out to expensive restaurants, suggest meeting at home for dinner and everyone pitching in.
Spending needlessly is a habit, however if you apply some discipline towards smart saving and investing, after a little while you will start to have a bit more money at the end of each month.
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