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:
and restaurant meals
subscriptions (newspapers, magazines, television services, computer services,
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
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
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!