Set realistic goals and save money on car insurance, bond and, mortgage and credit card payments.

What Matters to You

Make a list of the 10 most important things in your life. Next to each item, rank them in order of importance using numbers 1 through 10. The purpose of this exercise is to help you see the things you consider the most and least important and to provide you with a visual of why you need to save. Some examples of things that a person might put on their list include new home, car, special trip, artwork, starting a business, or pay off debts.

Setting Goals

Break your goals into short-term, intermediate-term, and long-term. Being able to see your accomplishments is a great motivator for you to work hard at saving. If you set a short-term goal of saving for tickets to the symphony and reach that goal, you will be encouraged to keep saving for the intermediate and long-term goals.

Be Realistic

When it comes to saving money, make sure the goals you set for yourself are realistic. If you earn R320,000 a year, saving R128,000 would be nice but it is very unrealistic. Make your goals attainable or you will never save.

Flexibility

Once you have set your goal for saving, realize that things can and will change. The secret is learning ways to be flexible. If you normally save R960 a month, when something unexpected happens, you may only be able to save R320 that month. This is fine as long as you focus on getting back on track.

Insurance

Shop around for insurance and work with insurance companies that can provide information on discounts such as good student, multi-car discount, etc. Some people think the price of insurance is the same from one company to the next. However, prices can vary dramatically and to ensure you get the best deal, you need to consider all your options.

Coupons

Okay, maybe you used to laugh as you watched people pull out their coupons at stores but the truth is that using coupons can save you hundreds of dollars every year. Coupons can be used at grocery stores, retail chains, any store where the item is sold. Some stores offer double coupon days, which is an extra bonus. On average, you could easily save from 5% to 15% on a bill for R640.00 simply by presenting a coupon. Coupons are not just for food items and by scouring your local newspaper you can find coupons for all sorts of merchandise.

Credit Cards

Use credit cards only for emergency. Although convenient, credit cards are dangerous and damaging. In addition, if you have a credit card that has a R6,400 balance and you pay only the minimum payment each month, it will take you between 20 and 30 years to pay off that R6,400 balance since the majority of money is going strictly toward the interest and not the principal amount.

Mortgage Payment

Paying one additional mortgage payment each year, whether in a lump sum or monthly increments, can lower a 30-year loan down to 18 years. If you pay more than one extra payment, the number of years will decrease even more. Since this additional payment will be applied only to the principal and not the interest, you end up saving thousands and thousands of rand once the home is paid off.

Credit Card Interest

If you have credit cards and your credit is in good standing, call your credit card company, and ask for your interest rate to be lowered. It is truly that simple. Unfortunately, most people do not even realize this is an option so they never make the call. Just tell the representative that you want a better rate on your credit card and they will take care of your request.

Patience

Be patient when it comes to saving. This means that you need to accept that it will take time to save and good planning. Be patient and remember that just because you want something, do not rush to buy just to satisfy your urge. Instead, wait for sales in order to get the best price, which in turn will save you money.