Six easy ways to save without giving up your favourite things

By Palesa Matlala

• A financial expert says many South Africans can save more by checking benefits they already pay for and avoiding paying twice for the same cover.

• With many families living from payday to payday, experts say automatic savings and family money talks can help build a financial safety net.

Many South Africans believe saving money means giving something up.

For some, that means no more takeaways.

For others, it means cancelling streaming services or skipping a favourite coffee.

But financial adviser Charlot Mokopane from Metropolitan says saving money does not always have to mean spending less.

She says many people could save more simply by taking a closer look at where their money is already going.

Research from the Bureau of Market Research shows that more than one in four South African adults cannot save at all because every rand they earn is already spoken for.

Mokopane says the answer is not always cutting the household budget.

Instead, people should first check whether they are getting full value from the money they already spend.

One common mistake is paying for benefits people already have.

Many bank accounts, credit cards, insurance policies and employee benefits already include services such as roadside assistance, travel insurance, legal advice and shopping rewards.

“Before paying for another service, check whether you are already covered,” she said.

She also warned that families often pay twice for the same insurance without realising it.

For example, an elderly parent may already have funeral cover through an employer while adult children are paying for another policy.

Mokopane believes one of the best ways to save is to make it automatic.

She says people should treat savings like any other monthly bill.

As soon as a salary is paid, a small amount should automatically move into a savings account.

Even small amounts saved every month can grow over time.

She also encourages families to talk openly about money.

A simple monthly discussion can help families spot unnecessary spending, avoid paying twice for services and decide what their savings should be used for.

Another useful tip is to keep savings separate from everyday spending.

A savings account that cannot be accessed immediately makes it harder to spend money on impulse.

Giving the account a name, such as “School Fees”, “House Deposit” or “Emergency Fund”, can also help people stay focused on their goals.

Mokopane says families should also build emergency savings together.

Unexpected costs such as funerals, retrenchments or medical emergencies often affect the whole family.

Sharing the responsibility makes it easier to cope.

She says stokvels, burial societies and savings groups can also help people stay disciplined because members encourage each other to keep saving.

“Saving is not always about earning more money,” she said.

“It is about making better use of the money you already have.”

Twenty one year old IT intern Tumelo Manhla knows what it means to change his spending habits.

Before becoming a father, he spent freely on weekends.

Now, his priorities have changed.

“Before I had a son, I could go out every weekend and spend whatever I wanted,” he told Scrolla.Africa.

“But after becoming a dad, I knew I had to start saving for his future and for emergencies.”

Manhla says he has not stopped enjoying life.

Instead, he has cut back.

He now goes out for drinks only twice a month and keeps Sunday as a special family day to eat out together.

His advice is simple.

“You don’t have to stop living. You just have to spend smarter.”

Pictured above: Money notes

Image source: File.