[Opinion] Saving money

[ians]

Advice required, I have a problem with spending money, in my pocket and it is gone faster than i can say 100 bucks.

A friend told the way he overcomes this problem is he transfers his total vat amount into a saving account every month( he doesnt have direct access to this account), and every 2 months sars takes the amount which the accountant works out to pay. The balance is left in the saving account unitl it reaches R100 000, he then transfer it into a money market account. This account is used to purchase vehicles or other expensive equipment required for his company and pays cash or eft transfer.

any suggestions?

[Perform Computers]

Are you asking how to save large amounts of cash or how to save on everyday expenses where you blow your cash on useless items? ( Like me ).

[Dave A]

I see spending and saving as two sides of the same coin. And ultimately you only have to focus on one side to sort out the other.

Personally I merely control my spending and the savings take care of themselves... Mind you if the savings aren't growing the way I like I do get harder on myself on the spending front, so maybe in my case savings are the goal and controlling expenditure is my method.

I certainly don't do anything elaborate. I just stick to my budget which is realistic and has expenditure less then income, and don't lead myself into temptation.

[Blurock]

It is good to have a contingency fund to fall back on. It is always expensive to find money on short notice in the event of an emergency. It can also be embarrassing if you can not pay suppliers or meet commitments. This gives you a bad name.

Your friend has a good idea. Maybe you should open an account for The Boss and pay him a healthy sum every month. If you need money for essentials, you only need to look in the mirror and ask nicely.

P.S. Stop carrying money in your wallet and leave your cards at home.

[Mitos]

I got rid of nearly all my cards years ago, credit, master, visa etc - only have an ATM card for quick cash. I found that helps to save & bring down your bank charges considerably. Agree with the idea of a separate account for SARS & a small Unit trust acc for rainy days..

[ians]

I am also considering having my debit orders for insurance and my bond moved to a different account (away from my bussiness cheque account) for when customers pay me a day or 2 late i dont have returns and fees. Will be putting a lot more consideration into my finances this year and i think dave has the right idea, a budget. My budget, if there is money in the account it is there to be spent, hopefully this will change soon.