July is National Savings Month and here are some practical tips on how to save your heard-earned cash.
Add savings to your budget
A written budget includes your goals and a breakdown of how to achieve them. You’ll know exactly how much money is coming in and how much you are spending. It is important to make savings part of your budget. You’ll know where you’re headed and you’ll be more likely to stick to the plan. A budget can also help you be more mindful of your spending.
Save for rainy days in the short term
The first savings account you need to look at is your emergency fund, which is a short-term savings solution. This is where you have quick access to your cash if something happens. Put an amount away every month, safe from your everyday expenses, so that you don’t have to borrow money in case of an emergency. Use your Multiply Money savings wallet for a rainy day fund and see your money grow from the very first cent.
Preserve your money for the long term
Long-term savings include putting money away for your retirement or your child’s education. This is where compound interest can help you grow your money. Compound interest is the interest you earn on the money you saved plus the interest that you received. So, if you leave your savings to grow, small amounts of money can grow to become large amounts over time.
Try to get rid of bad debt
Having debt is an inevitable part of life for most of us, but you get good debt and bad debt.
Good debt is the kind of debt where your money went into something that can help build your wealth or increase your income like student loans, home loans or starting a business. Bad debt is where you incur debt on things like credit cards or retail accounts only for consumption. The key is to try and avoid bad debt as far as possible.
Tap into your discounts and rewards
Make the most of your Multiply membership. You get fantastic rewards and discounts as a Multiply member, which can help you save. Use the cashbacks you earn to boost your savings in your Multiply Money savings wallet.
Talk to an expert
A financial adviser can help you navigate your finances and help you set up a plan of action.