Here are a few ‘tricks’ you can use to reprogramme your brain to help you manage your finances responsibly and reach your personal financial goals:
- Use personal milestones as motivation to save: Use a big birthday such as turning 30, 40, 50, 60 or 65 as a personal deadline by which you want to reach certain goals. This can include anything from updating your will, reviewing your retirement plan or saving for a deposit on a new house.
- Save your tax return refund and year-end bonus: Once you know if you will get money back from your income tax return, decide where you are going to save or invest this amount. The same principle applies to your year-end bonus. Once the money is paid into your bank account, immediately transfer it into the savings or investment that you decided on. Do not give yourself time to spend it on something else.
- Minimise your spending regrets: Eating out is expensive especially if you did not plan for it or spend more than what you initially thought you would. Win this ongoing battle by setting a budget on a monthly or a weekly basis. Other methods include limiting the number of times you go to a restaurant per week or per month as well as deciding on where you go beforehand and how much you are allowed to spend per meal.
- Leverage mental math: Take advantage of your natural tendency to round amounts off. For example by rounding off your monthly instalment to the next biggest amount (i.e. rounding off R2,700 to R3,000) on an ongoing basis, you will be able to pay off your debt sooner.
- Purchase products that will help you save for the future: Remember that Iemas offers a variety of products that can help you to achieve financial wellness. These products include retirement annuities and savings plans. Contact us on 0860 102 383 or visit www.iemasfinancialservices.co.za for more information.
- Take advantage of rewards programmes: Did you know that as an Iemas member you share in the co-operative’s profits through the annual member benefit payment? In November each year, members receive their annual member benefit payment either through a cashback or as a credit against their existing loan. To help you save even further, a portion of the benefit payment is allocated to a savings fund on which you receive an annual interest. For more information contact Iemas on 0861 043 627 or visit Iemas Rewards for more information.
Read related article here: 3 money secrets only rich people know
Adapted from: https://www.marketwatch.com/story/train-your-brain-to-save-more-and-spend-less-2018-03-22?utm_source=Moneyweb&utm_campaign=fb62076df7-EMAIL_CAMPAIGN_2018_03_23&utm_medium=email&utm_term=0_b106a40770-fb62076df7-187390109&mc_cid=fb62076df7&mc_eid=c8a560c03b