Whether you work for a company or own a business I believe most of us put 100% into what we do. Yet few of us watch how we spend that hard earned money. Money equates to time. If you calculated how much working time you traded for that purchase you might think twice. Many parents, and I am no exception, compensate lack of time with their children for toys. This is short instant gratification that can never replace quality time. Please, go ahead and test this theory. Ask your kids what birthday or Christmas gifts they received 2 years ago. Then ask them what their favourite holiday was in the last 5 years. You will be amazed at the detail and how long they will talk about the holiday.
The purpose of this post is to help you get the daily running costs down so you have extra income to spend on family experiences. If you carry debt then I suggest using these saving tips to assist clearing your debt. Then you can get down to those great life time experiences.
I have been trying to avoid the topic of the current Corona-virus Pandemic. However, if you in the situation where your income has been affected these tips will also help you.
Take some time to re look at your insurances. We just go year after year accepting the standard 10% increase on our insurance premiums. Phone around and get additional quotes. Then speak to your current insurer and see if they are able to match your lowest quote. Ensure your quotes are like for like. Make sure you have the same excess and coverage as before. I run this exercise annually and my current insurer has met me at my lowest quote every time.
Cable or DSTV
Get rid of cable or DSTV as we call it in South Africa and move to online streaming. Most of us have Broadband already so this will be a significant saving. If you don’t have broadband, research packages suited for your family. The initial set up will cost you but it will be worth it. You will need to stay on top of the market just like your insurances. Companies are always coming up with new competitive rates. If you don’t call your provider to query new rates they will carry on with business as usual.
Do you really need a new phone every two years? NO. This is just a marketing scheme to get more of your money for another 24 months for a phone you don’t really need. Keep your phone for another 24 month and just pay for the sim. You then go on month to month contract and your debit order is reduced.
Example: Debit reduces by R300 a month for 24 months, you have saved R7 200.
This can be used to pay of current debt. If you have no debt, then a nice family weekend break.
Consider the current package you have and if you are making full use of it. Adjust your package to your current usage. Your service provider can give you your average usage over a 3 month period. You may have to pay in to make the adjustment. Once you do the calculation you will find it is still worth it.
Remember that top up packages are now cheaper, so consider this when adjusting your package.
Subscriptions and Memberships
New years resolutions usually involve a gym membership. However by February interest is dwelling, life has taken over and visits are few. If it is not in full use then eliminate it. If you are trying to cut debt I would forgo all memberships and subscriptions. Magazine subscriptions are just no longer needed when you can find everything online.
Initially you have to outlay money but in the long term these changes will save you money. Cook on gas instead of the hot plates, gas heats quicker and is cheaper than electricity. Have a timer installed on your geyser. Set it for 2 hours in the morning and 2 hours in the evening. Turn your geyser temperature down, it will save you money and be safer if you have young kids. Just doing this saved us over R400 a month. Change all your light bulbs to LED’s. There is a fitting that will convert your current lights to make them LED compatible. We chose the more expensive LED bulbs. These come with a 2 year guarantee.
These small changes may seem insignificant but have a big impact overall. These significant saving can assist in paying off debt or go towards those great experiences we enjoy so much.