We often think that cutting down on expenses means cutting down on your favourite things. While cutting costs does require giving up spending on certain things, it doesn’t need to be seen as a deprivation.
What you need is a plan and a shift in mindset. Remember that you’re doing it for a reason; whether you want to save for a big purchase, pay off debt or have more freedom, it’s possible to achieve your financial goals without reducing your quality of living.
Here’s how to flip the script on living frugally with our top creative ways of saving money (that you can start today) without feeling like you’re sacrificing anything.
Change your mindset about budgeting
For many people, the word ‘budget’ translates to limitation, something that reigns you in and is ‘hard’ to stick to, when in fact it’s a wonderful tool that puts you in control and gives you freedom to choose what you want to prioritise.
Instead of seeing it as a way of giving up things you enjoy most, see it as a way of helping you achieve the things you really value. You might even find that you have more money than you think when you’re not weighed down by debt and unnecessary expenses.
Top tip Instead of feeling like you’re giving something up, focus on what you’re getting. |
How to cut costs on essential expenses:
Household savings
- Be aware of your energy and water usage: by monitoring how much you’re using, you can scale down more effectively. For example, a 3-minute shower is just as effective as a 5-minute shower.
- Only use what you need: switch off lights when you’re not in a room and boil enough water for how much you need, not a full kettle every time.
- Put a timer on your geyser: control when, for how long and how many times the water heats up instead of it heating up all the time.
- Keep up with the maintenance: prevent and address potential issues that will be costly to repair or replace. When things are well maintained, they operate more efficiently. For example, clean gutters mean water doesn’t spill over onto your roof causing potential leaks.
Grocery savings
- Stick to your shopping list: know what you need and how much you want to spend and only buy that when you go to the shops.
- Prep meals: this will help stretch your food budget, save you time during the week and reduce food waste, helping you avoid the temptation of eating out or ordering in. Plus, it’s a better way to meet your nutritional goals.
- Beware of ‘great deals’: buy 2, get 1 free or buy 2 and get 20% off deals don’t necessarily save you money because you had to spend more to get it.
Cutting down on discretional spending
- Have ‘no-spend’ periods: during a no-spend weekend/week/month, you still cover your costs; you just don’t spend extra money on luxuries (i.e. clothes and entertainment). It’s also long enough to see tangible results but short enough to be sustainable.
- Get rid of the needless things: instead of looking at ‘what you don’t need’, look at ‘what you don’t use’. Do you want subscriptions or memberships you don’t use? Cut them out and use that money for other things.
Tackle your debt
- Work on paying off your debt: start with the high-interest debt so that you can free up that money to use for other purposes.
- Pay on time and in full: this will help you avoid being charged with unnecessary penalties or fees that take money out of your budget.
Don’t just cut down: do more with your financial tools
- Make the most of your credit card lifestyle and travel benefits to save you money.
- Loyalty programmes, such as UCount Rewards, give you Rewards Points based on your spending, which you can redeem to pay for your groceries, dining and fuel or add to your savings etc. This lets you save money on purchases you would make anyway.
- Use our Banking App to help you manage your money, stay on top of your budget, automate your savings and more.
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Disclaimer: This article is solely intended for information. It does not constitute financial, tax or investment advice or recommendation. Please speak to a financial advisor or registered financial professional before making any financial decision(s).
Standard Bank, its subsidiaries or holding company, or any subsidiary of the holding company and all of its subsidiaries make no warranties or representations (implied or otherwise) as to the accuracy, completeness or fitness for purpose of the information provided in this article or that it is free from errors or omissions.
