The last time you were here, I had just stared my credit card journey. Since then, so much has happened.
I applied for my credit card online and it took +- three (3) working days, and it was delivered to my doorstep. One of the main reasons I decided to apply for a credit card was to increase my credit score and increase my chances for future loans I might partake in.
Without any doubt this has definitely been more difficult than I anticipated, it now seems that every difficulty that requires funding is an emergency, especially being able to access the funds at any given moment. I quickly realised that discipline and dedication would be the only tools I could use to save myself from falling into a never-ending debt –trap.
I immediately made a conscious decision to; use thirty percent of the full amount, ensuring that I do not over spend and that I always pay the full amount before the end of the fifty-five-days.
Spring is here!
I cannot be the only one looking forward to summer.
Having entered into a new season, we can look forward to new exciting ventures. I am going to share three trending financial hacks we have seen grow over the past few months.
Three financial hacks
Stockpiling:
One of the things I have seen trending a lot is stockpiling. Stockpiling can be defined as the practice of storing large supply of something for future use. This practice has been around for many years, but has increasingly become more popular within these uncertain times.
Advantages of stockpiling
- Saves you money, you are buying the goods at a cheaper price and you are buying more than one good.
- Saves you time, because you won’t have to go to the shops frequently.
Disadvantages of stockpiling
- Spoilage, items with expiration dates, like cosmetics, can become rotten or unstable if not used.
- Clatter, when one is not organized, this can lead to a disaster with storage within your home.
I would recommend stockpiling products you know you will use, because it easy to buy products you do not need and will not use; just because they might be affordable.
Read: How can I make my money last until payday?
Lay-buy
Is a more popular way to buy goods when you cannot afford to pay for them immediately, you normally pay for these goods in instalments. The retailer will keep the items until you have fully paid for it.
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Disadvantages of Lay-buy
- Could become expensive if you change your mind or can no longer keep up with the payments.
Advantages of lay-buy
- You get the product you want.
- Pay off the amount by paying monthly instalments
- No interest fees apply
This is a great way to ensure you buy the goods you want at a rate you can afford to pay; remember to keep in mind that the timeframe attached.
Read: Why you should start saving for December: festive season
Tax-free savings account
Tax-free investments were introduced in 2015 to encourage South Africans to save. Any person including minor children can have one or more tax-free investments. There is a limit of R500 000 per person per lifetime, contributing a maximum of R36000 per financial year.
Advantages of a Tax-free investment
- No tax on earnings
- No penalties on withdrawals (depending on the type of investment you have made)
Disadvantages of a tax-free investment
- Limited contributions per annum of R36000
- Limited lifetime contribution of R5000 000
Read: Tax-free Investment Account: frequently asked questions
This a great way to invest for the future; all the interest, dividends or capital gained is guaranteed to be tax free, and you are able to use these funds for anything you would want.
The above hacks had been trending because of the benefits it has on everyday life. Being able to save extra money and enjoy life without having the unnecessary stress of debt. We have to understand that building wealth is not a destination but a journey that is never – ending, and the only way we can ensure that we build a better future for our generation is to become financially literate. We need to start taking accountability and live within our means, prioritise and accept that slowly is the new fast.
Read: How to save while enjoying life
In conclusion, the month of September has been a month of learning and adapting. I’ve realised that staying on course takes a lot of discipline and will, at the same time I understand that I might not always be able to win every situation; and when I fall or fail, I will have to have the courage to forgive myself and stand up.
Taking care of my mental health is as important as taking care of my financial stability. I have come to understand that, becoming financial free, is not saving and investing all the money and forgetting to reward ME!
Free Course: How to master your money mindset
Continue to follow my credit card journey on the Money unscripted blog, please send any questions to info@moneyunscriped.com to ensure I answer all the questions you might have for Lee Royal.
