Life Insurance
4 Things You Are Getting Wrong When It Comes to Saving
4 Things You Are Getting Wrong When It Comes to Saving
11 Oct 2022

Saving without making extreme budget cuts can be daunting - especially when everything seems to be going up.

However, skipping on saving altogether could come back to haunt us, especially when we are faced with an emergency. Here are four mistakes to avoid so that your saving journey is smoother.


Saving whatever is left

It is easy to fall into the trap of saving whatever’s left over once the debit orders have gone off. Doing this can affect your savings. Having a set amount that you can be committed to can make saving easier and also be included as part of your budget. Including your savings as part of your budget instead of the last thing that you do with whatever money you have left over can make it easier to stick to your saving goals.


Not setting a realistic goal

Things are indeed becoming more expensive and when faced with a myriad of expenses, saving can be the last thing that we think of. However, committing to a saving amount that you can realistically afford each month is crucial. Doing this will help you avoid cutting back on the most important thing that could possibly save you during a rainy day. Re-assess your current spending by checking 2 - 3 months’ worth of bank statements and seeing what you can afford to put aside each month.


Tap into financial planning

As much as we would love to crunch the numbers ourselves, getting an objective eye to look at our finances can go a long way. Speaking to a financial planner can help you find blind spots that you may have missed when it comes to reaching your financial goals. It can also give you access to alternative ways to save and also ways to protect yourself financially without stretching yourself too thin.


Be aware of the lifestyle creep

Lifestyle creep happens when we start earning more and upgrading our lifestyle to afford things that we may not have had access to before. However, this also means that we end up losing more money in the process if we are not careful. Things such as living on borrowed money, purchasing a car that puts your budget under strain or immediately upgrading your lifestyle when you enter a new income bracket can affect you in the long run - especially when faced with unexpected changes financially. Always keep in mind the golden rule of 'just because you can afford it' doesn't mean you should get it.

Need more information on MiWayLife? Read about our life insurance product, or get a life insurance quote in 30 seconds. Alternatively, call us on 0860 64 54 33 .
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Terms and conditions apply. Eligibility, cover and benefits are determined on individual risk profile. MiWayLife is an authorised FSP (No. 45741) and its product offering is underwritten by Sanlam Life Insurance Limited, a registered long-term insurer. MiWayLife is a division of Sanlam Life Insurance Limited - Reg No. 1998/021121/06