With a personal budget in place, you’ll have a better picture of where your money goes and where you can cut back if the need arises. An accurate personal budget often leads to big surprises about where your money is going!

You may be spending a lot on:

·         cafeteria and restaurant meals

·         long distance phone charges

·         clothing and footwear

·         monthly subscriptions (newspapers, magazines, television services, computer services, clubs) entertainment

·         discretionary expenses including snacks, impulse purchases 

After you’ve taken a look at your expenditure profile over time, you can consider these four savings tips: 

Save your income

Use an automatic savings plan to make sure that you save a percentage of your pay cheque every payroll period. If you invest $100 a month in mutual funds, you could have as much as $20,000 in ten years, depending on the rate of return. 

Reduce your debt

Consider replacing your hire purchase debt with a loan from a Credit Union which often has a much lower rate of interest. 

Lower your credit card costs

Firstly, use your credit card less. You can also reduce your credit card costs by switching to a card that charges lower interest or lower fees. You should note that credit cards are not a good way to borrow – the interest rates are likely to be much higher than those on most consumer loans. 

Save on bank fees

Find out what you can do to get free chequing and ATM use. For example, keep a minimum balance in your account, and only use ATMs at your own bank, if there is a charge for using third party ATMs. Find out how much money you’ll need access to in an emergency, three to six months’ worth of expenses, and keep only that amount in savings. Forego one big expense per year.

Use your budget to identify a major expense that you can forego or minimise. For example, travel and home furnishing purchases can be delayed in the name of economising without making a major difference to your standard of living.


How Your Sagicor Advisor Can Help

Your Sagicor Advisor can help you to create and monitor your budget  and to use it to guide your decisions about managing your cash flow, investing and building a nest-egg for retirement. Your Advisor will begin with a fact-finding exercise that will get you started in identifying the major incomes and expenses for your household. 

Use our helpful Budget Sheet​ to track your finances and our Sagicor Advisors  will help you explore other ways to save!​