By Isaac Chanakira
The ability to save money is a skill that is normally overlooked by a lot of people. Contrary to popular belief, you do not have to be an expert about personal finance to get rich or earn huge amounts of money to be able to put some aside. A big paycheque does not necessarily mean that you will be able to save any money. Saving money is a habit that you will have to develop regardless of how much you earn.
When I was a kid still going to school, my mum used to give me 50c as pocket money every school day. I used to put 10c in my piggy bank first thing in the morning, consistently, before I go to school. My plan was to raise enough money to buy my comic books during the school holidays. With the 30c left after my saving, I was able to buy enough sweets for myself and my friends.
When my mum got promoted at work, she increased my pocket money to 60c. I was so used to spending 30c at school, so, I just continued and increased my saving to 30c per day. I did not realise that I was developing a saving habit at that age. When I was old enough to do some newspaper runs in the neighbourhood, I continued with my saving habits, but this time putting more money in the piggy bank.
In the Diaspora you will notice that the financial system is designed in such a way that you spend a lot of money on a lot of things such as food, rent, transport, childcare, car registrations, car services, toll gates, clothes, cable TV subscriptions, the list is endless. It is very easy to spend all your money on the things mentioned above.
So, I am going to share the 5 things that you can immediately implement in your life that will help you save money. Saving is crucial in your wealth journey because it gives you the ability to invest.
Here are the 5 things you can do:
- Starting now and regardless of how much you earn, put a certain amount of money in your saving account consistently. You will notice that I did not say put 10% of your earning on savings because everyone is different and that might be too much to begin with. So, come up with an amount, the idea, for now, is to start developing a saving habit. This money must be put away first before you pay any bills. You can talk to your employer to setup a direct debit so that part of your money can be deducted straight from your salary, that way, you do not have to think about it for it will happen automatically.
- When you get a salary increase, immediately divert the increase percentage towards your saving. Similarly, when you get a lump sum from your tax returns, your bonus, or any other unexpected sum, put it in your saving account. Do not think of upgrading your mobile phone or buying some expensive lounge suite. Remember, before the increase, you were surviving and meeting all your commitments, so, do not change the way you live now.
- Buy your glossary in bulk and carry your lunch to work. Calculate how much money you are currently spending per day on lunches and multiple that amount by the number of days that you go to work in a year or, for easy workout, just use 365 days in a year. You will be surprised by how much money you are currently spending.
- Having a car of your own does not necessarily mean that you must drive it to work every day. You can make a huge saving by using public transport. You will save on fuel, wear and tear on your car, road tolls and parking. If you live far from the bus stop or train station, consider limiting your drive to the station. Most stations have free parking.
- Limit your entertainment expenses and avoid eating out regularly, it costs a fortune. Home made meals are normally healthier and delicious. If you do not know how to cook, try YouTube cooking channels. You might awaken the inner chef in you. Always track your spending religiously, that way, you will know where you are going off budget.
There is a whole range of things you can do to save money in the Diaspora, but I think the five items mentioned above are low hanging fruits and if followed, can easily make a big difference in your saving capabilities.
We can all share ideas on how best to save money in a foreign country. It might sound like common knowledge to you, but you will be surprised by the number of people who might not know it, so, the people in the diaspora who read this column will be happy to know what you think.
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