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Make your Finances work in Extraordinary Times

Money Habits To Make Your Money Work For You   

We all have habits – some make our lives better while others just stand in the way of success. In these extraordinary times, when everything seems to be on the rise, it is vital to change your money habits, because our habits determine what we do day after day – and what we do every day shape our futures.     

A habit is defined as something you do often and almost without thinking. Experts estimate that our habits dictate around 40% of what we do each day! Given that almost half of what we do – and do often – is habit, it makes sense that habits will have a very positive effect on every aspect of your life. The money habits that many ordinary South Africans have in common tend to affect and harm us in these extraordinary times that we find ourselves living in, where interest rates and the cost of living continue to rise. Now more than ever, we need to do a little extra in order to make our rands last month on month.

“The difference between ordinary and extraordinary is that little extra.” – Jimmy Johnson

Below are three extraordinary habits that very few ordinary people have, along with simple tips to implement these habits and add the ‘little extra’ that will transform your finances now and into the future.

Habit 1: Spend less than you earn & avoid debt

According to a recent survey, 73% of South Africans cannot make ends meet. It is not surprising, because a staggering 76% of ordinary South Africans’ income goes to paying debt. Spending less than you earn is an extraordinary money habit that few people have. And yet, it is the only way to get ahead financially – instead of getting into a spiral of debt stress. Look at your income and your expenses. Start with the essential expenses, list what you can pay based on your income and try and eliminate any unnecessary expenses from your budget.

Habit 2: Save!

According to Statistics SA, the household saving rate among South Africa is 1%! This means that saving is another extraordinary money habit that very few ordinary people have. Saving is income not spent; and learning how to save regularly will make a substantial positive difference to your financial future. Even just R100 a month can grow into a significant amount over time. Save by reviewing on all of your expenses, whether you can save a few rands on luxury items removing them from your shopping trolley, or saving on data costs, or trying to save on take aways. The goal is to start to save towards an emergency fund, which is three months of living expenses. This can protect you against unexpected expenses that impact our budgets, like funeral costs or an unforeseen event.

Habit 3: Build your Retirement Savings  

With fewer than 10% of South Africans able to retire financially independent, building up a retirement fund is another extraordinary money habit practiced by only a small number of people. To build up a retirement fund, financial experts suggest saving 15% of your gross income (before tax and other deductions) over 40 years – from the age of 25 to 65.

While, starting to save for retirement as early as possible will make a big positive difference, it’s never too late to start.

Join our August money challenge Which money habit do you believe will make an extraordinary difference in your financial life? Why not share this idea with your financial coach right now and get friendly assistance to use this habit in transforming your financial life?

Remember, your financial coach is always ready to help! Simply click here for assistance in using all three of these extraordinary money habits – spending less than you earn, saving, and securing your retirement – to transform your finances into a better financial future.

“You can never make the same mistake twice: the second time you make it, it is not a mistake, it is a choice”

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