How to Boost Your Savings on a Shoestring Budget
Finance Minister Enoch Godongwana’s recent budget revealed a deepening deficit of 4.9%, indicating that times are tough. The South African government has racked up an additional R356 billion in debt, and the cost of living is straining economic growth.
In an ideal world, we’d all have six months’ worth of savings sitting in our bank accounts. But the reality? A mountain of debt, no emergency funds, and most of us are living paycheck to paycheck.
Read: 10 Ways to Save Money and Conquer Debt in SA
If you need to boost your savings on a shoestring budget, you’re in the right place! Let’s dive into some tips that can help you save, even when your budget feels razor-thin.
Better Savings on a Shoestring Budget
Living on a tight budget isn’t easy, but there are ways to make it more manageable. Here are some practical tips that can help you take control of your finances, no matter how small your budget is:
Take Inventory of Your Debt and Savings
The first step to financial freedom is knowing where you stand. Sit down and go over your spending habits, your income, and what you’ve saved (if anything). Get a clear picture of where your money is going. While you’re at it, consider looking for ways to bring in extra income, even if it’s small. Whether it’s a side hustle, freelancing, or selling unused items, every little bit helps!
Stop Overspending
This one’s tough but essential. Take a long, hard look at where you’re spending unnecessarily. We all have those guilty pleasures – whether it’s that subscription you don’t use or ordering in one too many times a week.
Read: 5 Ways to Treat Yourself on a Budget
Cutting out those little luxuries can make a big difference. Start trimming the fat by cancelling subscriptions, cutting back on dining out, and focusing on only the essentials.
Prioritise Savings
No matter how tight your budget is, saving something is crucial. Adopting a “save before you spend” mindset can set you up for success. Decide how much you can realistically put away each month, no matter how small, and make it non-negotiable. Even a small amount stashed away can add up over time. The trick is to make sure your savings happen first before the rest of your budget comes into play.
Get the Family on Board
If you’re managing a household, it’s important to get everyone involved. Have a sit-down with your partner or family to discuss the financial challenges you’re facing and the goals you’re working towards. When everyone’s on the same page, it’s easier to stick to the plan. Budgeting becomes a team effort, and the shared responsibility can relieve some of the stress.
Plan Your Meals
Meal planning may sound like a chore, but it can save you a ton in the long run. By planning your meals ahead of time, you know exactly what you need for the week, which helps you avoid impulse buys and unnecessary food waste.
Read: The Cheapest Grocery Stores in South Africa
Stick to affordable ingredients and stretch them across multiple meals. Not only will this lower your grocery bill, but it’ll also save you time during the week—no more wondering what to cook at the last minute!
Step Away From the Credit Card
If you’re trying to save and pay off debt, the worst thing you can do is rely on your credit card. Stick to using your monthly salary and avoid racking up more debt. Credit cards can be a slippery slope, especially when you’re trying to dig yourself out of a financial hole. The goal here is to stop the cycle of debt—so say goodbye to the plastic for now.
Turn Saving Into a Challenge
Saving money can feel restrictive, so why not make it fun? Turn it into a challenge! Set a spending limit for yourself and see if you can beat it each month. For example, if you manage to come in under budget, reward yourself by putting the difference into savings. Every R10 you don’t spend is R10 that goes into your savings account. It’s a great way to stay motivated and gamify the process—plus, it’s rewarding to watch those savings grow!
Be Flexible with Your Budget
Life has a way of throwing curveballs when we least expect it. Your budget needs to be flexible enough to handle unexpected expenses.
Read: Budget Tips for Surviving South Africa’s Rising Living Costs
Whether it’s an emergency car repair or a surprise medical bill, make sure you leave some room in your budget for life’s little surprises. This will help you avoid dipping into your savings or going further into debt when the unexpected happens.
Let Debtline Help
If you feel like you’re stuck in a financial rut, don’t hesitate to call in the experts. You don’t have to stay on a shoestring budget forever. If you’re serious about getting out of debt and want to start living for tomorrow instead of paying for yesterday’s choices, Debtline can help.
Debtline is a solution with NCR-registered counsellors who are ready to assist you on your journey to financial freedom. We provide advice on managing debt, getting back on track, and even offer legal protection for those under Debt Review. Want to know more? Fill out the contact form, and our team will give you a free callback to discuss your options!
