5 Bad Money Management Habits You Definitely Need to Lose
December 30, 2020
The financial literacy of the average South African is less than it should be. In fact, it is not unheard of for professionals of all ages to have no savings well into their late twenties! This makes it especially difficult for the average person to deal with emergencies, not to mention it can make getting a loan someday rather challenging.
Not everyone is perfect at budgeting; after all, there are moments when we should treat ourselves with the things we deserve. Even so, it is incredibly important to budget, save, and live within your means. If you have experienced problems doing this before, read on. We have made this list of the money management mistakes that South Africans need to avoid for better financial wellness.
With no further ado, here they are:
1. Shopping hungry
It is important that your regular trip to the grocery store is done on a full stomach. After all, you never know what the hunger will make you do. Even a light snack before the trip might help you resist certain temptations. Not only that, but you are less likely to be struck with sudden cravings for unhealthy and needlessly expensive luxury foods.
2. Not switching to streaming
It might surprise you to find out that many South Africans are resistant to switching to streaming services instead of cable providers. Do you really need those bazillion channels on DSTV, when far more affordable streaming services are out there on the internet? Consider how much TV you actually watch, and weigh that against the R39 and R59 plans of Netflix.
The beauty of switching to streaming services is that they are far more convenient. You won’t have to time your watching perfectly and can watch whatever you want on-demand!
3. Unnecessarily large portions of food
Many South African restaurants have appetizer portions so big that you’ll need to take home the leftovers. This creates the illusion that you would be getting more value for your money; in reality, all this does is make you spend more for food that you don’t need. The next time you visit your favorite restaurant, try avoiding the upgrade. That way, you would neither overstuff yourself nor spend more than you need to.
4. Choosing fast shipping
Was the product you just ordered an emergency? The unlikely answer is no, because if it were, you would be going to a store to get it. If you can wait a day or two for your product, then you can spend less and wait a little longer. Those little amounts add up in time, and you might be surprised at how much your impatience spends on your behalf.
5. Buying coffee daily
As we have mentioned before, all those little things you pay for on a regular basis add up over time. You might think you need your daily boost from your local coffee shop, but there are cheaper ways to get your coffee.
For example, a R33-cup of coffee once a workday for a whole year amounts to roughly R7920. That money is better saved or spent on other things.
Final thoughts
The two most important elements of budgeting and money management are budgeting and saving. This involves a complex balance of spending only you need to, cutting down on unnecessary expenses, and putting away something for a rainy day. Not only does this prepare you for emergencies, it can open up other financial opportunities in the future and your ability to get a loan.
If you do feel you need to get a loan to help with your current financial situation, send us at Hoopla Loans a message. It is 100% free to apply, and we can approve loans for any purchase as quickly as possible.