Becoming Financially Smart

Saving money is one of those tasks that is so much easier said than done. Everyone knows it is smart to save money in the long run, but many still have difficulty doing it.

There is more to saving than simply spending less money, although this alone can be challenging. Smart money-savers also need to consider how to spend the money they do have as well as how to maximise their income. The YouthPaper has some hints to help you out…

The easiest way to save money rather than spending it is to make sure that that you never get a chance to spend the money in the first place. You could arrange to have your income deposited directly into your account. This way, you save automatically and the money you keep each month is yours to spend as you please. Over time, depositing even a small portion into your savings can add up.

It is a lot easier to save if you know you have something to save for. Set yourself savings goals that are within your reach to motivate yourself to make the tough financial decisions needed to save responsibly. You should really decide what you are trying to achieve and by what date. Break your goals down into the monthly amount you will need to save. Most importantly, make sure your goals are attainable.

Giving yourself ambitious (but reasonable) time limits for achieving your goals can be a great motivational tool. For example, let’s say that you set a goal to be on your way to owning a bicycle in two years. In this case, you would need to find out what the average bicycle costs in the shop you would like to buy from and start saving for the payment on your new bike. Setting time frames is especially important for essential short-term goals. An ambitious but reasonable time frame can help you achieve this goal.

Keeping a tight budget is a must for anyone looking to save money, but if you do not keep track of your expenses, you may find that it is difficult to stick to your goals. Keeping a running tally of how much you have spent on various types of expenses each month can help you identify ‘problem’ areas and adjust your spending habits to fit your budget. It can be handy to keep a small notebook with you at all times. Get in the habit of recording every expense and saving your receipts (especially for major purchases). When you can, enter your expenses in a larger notebook or a spreadsheet programme for your long-term records.

When you are having trouble saving money, it is easy to lose your nerve. Your situation may seem hopeless. It may seem almost impossible to save up the money you need to meet your long-term goals. However, no matter how little you’re starting with, it’s always possible to begin saving money. The sooner you start, the sooner you can be on your way to financial security.

If you’re having trouble saving money, it’s wise to start here. Many of the expenses that we take for granted are far from essential. Eliminating luxuries is a great first step to improving your financial situation because this won’t impact your quality of life or your ability to perform your work significantly.

Owning a car today can be very difficult for young people. Instead of driving, use a cheap (or free) alternative option instead. Not only will this save you money, but also potentially allow you to spend extra time exercising and cut down on the stress from your daily commute. Depending on where you live, you may have a variety of cheap options for public transit at your disposal. Cities like Windhoek have municipal buses that are way cheaper than taxis. Consider walking or biking to work. If you live close enough to your school, walking is excellent way to get to school for free while simultaneously getting fresh air and exercise.

When it comes to spending money, there are some things that you absolutely, positively cannot do without. These things (namely food, water, housing and clothing) are your first priority when it comes to spending your cash. Obviously, if you become homeless or suffer from starvation, it becomes very, very difficult to meet the rest of your financial goals, so you’ll want to ensure that you have enough money to cover these bare minimum requirements before devoting money to anything else.

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.

The Namibian uses AI tools to assist with improved quality, accuracy and efficiency, while maintaining editorial oversight and journalistic integrity.