> Six steps to debt freedom

> Brighten their future

> Gold fever: here to stay?

> Nedbank goes green

> Evaluating performance

> Gold hits 18-month high

> Pay less estate duty

> Why lending will resume

> Positive platinum demand

> Breaking the habit

Today, 10 February 2010

› Eskom burns whistleblowers

› 'ANC does not kill people'

› Simelane's spelling blasted

› Victory delights Smith

› The people versus Julius

Yesterday, 09 February 2010

› Strike three, Mr President

› Cooked head discovered

› Zuma apology 'unwelcome'

› 'Illegal' traps blasted

› Madiba to grace Parliament

No matter how they try, there are people who simply can’t hold on to money long enough for it to be called savings. But don’t despair here are some tips that will help you get going.

1. Start small

The trick is to start small. Experts suggest you save at least 15 percent of your income, but maybe that’s a tough goal. Don't give up just because you can't save that much. Establishing a savings habit and saving consistently is the key objective. Start with something you know you can live with, maybe R200 a month.

2. A pension plan

If your company doesn’t have a compulsory pension, ask them to set up a voluntary plan for you. The money taken off your salary every month will soon go unnoticed.

3. Monitor your ATM withdrawals

Decide how much you will take out each week and make it last. Make it a little tight. And try to decrease it over time if you can. If you have money left at the end of the week, put it into your savings account.

4. Pay off all your credit cards

Begin paying extra every month on the card with the smallest balance. When it's paid off, move to the card with the next-highest balance. When you're finished, start paying the cash you have freed up to your savings or investment account. By paying down short-term debt, you get a return of whatever the interest rate happens to be. So if you pay off R1 000 that you're carrying at 18 percent you get an 18 percent return.

5. Set up an automatic investment plan

You can arrange to have as little as R150 a month deducted from your bank account and deposited into a unit trust account.

6. “Round up” your bond payment

Pay a little extra each month on your bond by "rounding up." You will add equity to your home, giving you extra flexibility when you decide to move or refinance. If you prepay just R100 a month extra on a R150 000 loan, you will save R72 299 in interest and shave 4 years off the loan.

7. Earn a better return

Once you've become a reliable saver, it's time to think about how to earn a better return. One simple way to do that is to take some money from your bank savings account and invest it into at least two different unit trusts.

8. Take advantage of windfalls

Use any windfalls like tax rebates or medical aid refunds to pay off your car loan or credit cards.

9. Evaluate your insurance

Evaluate your insurance policies. You may be paying for services you don’t need or paying into non-performing investments.

10. Account for your money

And finally, account for your money. People who know where their money goes spend far less and save more. Keep a little notebook with you to record your small cash purchases. See it’s not that difficult and the payoff is huge, financial peace of mind.

If you have any questions or comments you can email me on ionam@702.co.za