A budget helps you develop a saving habit. Without a saving plan, it will be harder to achieve your financial goals such as buying a house or car, pursuing further education or even building a retirement fund.
It is advisable that you save at least 10% of your income every month and even better if you can save between 15% to 20% because this will translate into more money for your future.
Guide on cultivating a saving habit
Always pay yourself first
Save at least 10% of your income and make your savings automatic through a salary deduction scheme or other similar arrangements.
Motivate yourself with a financial goal
Set meaningful and significant goals to motivate yourself to save; be it short, medium or long term goals.
Make savings a challenge
After having saved the first 10% of your income, gradually challenge yourself to save a little more.
Every time you get an extraordinary income – such as a bonus or cash gift – put part of it into your savings account Immediately.
If you get a pay rise, keep to your current standard of living and put the additional money towards your savings.