Borrowing causes stress, and stress is something you need to avoid.16. Before buying something you need, shop around for a better price, especially for food, clothes, shoes, cars, and insurance. Just because the supermarket nearest your home is the most convenient, it doesn’t mean it sells the cheapest goods. Shopping can be extremely therapeutic and enjoyable, so instead of looking at it like a task, make a day of it.17.
Developing a lifelong habit of saving and investing is not easy. It requires will-power and determination. Write down your goal and pin it up so you’re constantly reminded of it. Once this practice locks in and becomes automatic, financial success is virtually guaranteed.18. Buying presents is great, but don’t overdo it. Gifts that are well thought out are more appreciated than mindless ones picked on a trip to the mall. Keep your spending down on special occasions - birthdays, anniversaries and holidays such as Christmas.
It’s always the thought that counts.19. Credit cards can either be your worst enemy or your best friend. But more often than not, they’re our worst enemy. They give us a false sense of security and allow us to spend money we don’t actually have so it’s best to avoid them. Credit cards also have the highest interest rates out of any borrowing mechanism from a bank. Live within your means and spend only what you have.20.
If you do have a credit card the least you can do is to pay them off first and ensure you have zero balance each month. Paying the minimum is a trap as the outstanding balance remains the same. You’re essentially only paying off the interest to the bank if you do that.
If you maintain a zero balance, you avoid coughing up to 3 per cent ‘finance charges’ per month, ‘credit shield’ and all other pointless charges. Doing so would allow you to save thousands, each year.21. An emergency fund is helpful in case of unexpected misfortune - job loss, accident, death in the family.
The rule of thumb here is to have an equivalent of three months of your salary kept aside as an emergency fund and within easy reach.22. If you fancy something, wait for 24 hours before buying it. Chances are you will realise you don’t actually want it. If you love window shopping, ignore shopping malls for a while - or altogether -- because window shopping often turns into actual shopping.
Don’t allow yourself to be tempted.23. Turn off appliances when they are not in use, switch to energy-saving lights and turn off the air conditioning when you leave the house. Even by placing a water-filled plastic bottle inside an average-size toilet flush tank to displace extra water will result in hundreds of litres of water being saved each month. Don’t let the water run when brushing your teeth, use a glass instead. Avoid taking extended showers or baths. Know when the peak-hour rates apply and avoid using home appliances during that period.
Avoid disconnection and reconnection fees by pay your bills on time. All these add up.24. Don’t let a pay rise give you an excuse to upgrade or spike your expenses. Don’t ditch your small sedan for a Porsche just because a neighbour drives one. Don’t move into a nicer, bigger villa just because a friend lives in one. You can’t keep up with the Kardashians and come on, let’s be honest, you really wouldn’t want to.25. Take advantage of loyalty programmes that allow you to save points.
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