Lesson 3: Shop Smart

The more you keep your costs down, the more money you will have to spend on what you want as you start earning. The biggest secret of successful people is that they SAVE money.  Sure, of course, they focus on making money, but most importantly they practice holding onto it.

This doesn’t mean you have to live a boring life: quite the opposite. Knowing you are planning to be a success, and are willing to make small sacrifices along the way will make you feel grown-up, motivated, and in charge of your own life. Success is a mindset and you can enter that mindset as soon as you start to take your budgeting seriously.

Let’s look at a few of the money-eaters most encountered by young South Africans.

Data

Data! We know, your cell phone is practically an extension of you. Data, though, has been shown to be what most young South Africans are spending most of their money on.

Say you love whatsapping with your bestie till late at night. Do you find that the next morning you’re out of data? Wouldn’t it make more sense to meet her in person and chat for free?

Social media are also HUGE data-eaters. Count how many times you use the internet per day and try to cut down to one session of maximum one hour. During this hour you can answer messages, check for jobs, like a couple of pictures and do focussed research.

Limit your own data usage. Many, if not all, libraries offer free wifi. So do many coffee shops. In general, libraries are an excellent place to work, research and use the Internet, as they are peaceful and have little distractions. You’ll also be able to stay online longer without it costing you anything. Bonus!

Food

It’s easier than you think to cut down on food costs. Work out how much you can realistically afford to spend on food per month, and stick to it. Instead of buying cool drinks during the day, fill up a water bottle at home to keep you hydrated. Wherever possible, pack lunch to eat during the day instead of spending money unnecessarily at food outlets.

Try and limit your intake of junk food snacks – while a packet of chips might satisfy a craving, they’re empty calories that will only give you energy for one hour max, before you need something more. A balanced, modest lunch will solve this need to buy multiple snacks, and is far, far cheaper.

Clothes

Everybody wants to look good as much as possible. There’s nothing wrong with wanting to look nice. However, overspending on clothes can seriously impact your budget. Instead of making impulse buys on things that are trending, consider a wardrobe that won’t go out of fashion easily. Price the items carefully; then when you are sure about them, purchase them.

A lot of people go to great lengths to buy, at whatever cost, whatever is “in”: flashy sneakers, for instance, or the new ripped-knee craze in jeans.
Responding to every single new trend on the market is not practical – a lot of these trends fizzle out a month or two after being “hot.” Ignore them.
What’s more important, being trendy or achieving your dreams?

Think long term: Once you have a job and are earning a fixed salary, you will have money to spend on that fly jacket. For now though, keep it simple. Be patient.