Kochie’s tips to manage your money
Kochie shares his tips to make the most of your money.
Never pay retail
Do your homework so you never have to pay retail again. Look for sales and take advantage of them. Bargain hard. What’s the worst that could happen? They say no. Taking advantage of sales and bargains can save you in the long-term.
Save 10% of your income
Generally, you should be saving 10 per cent of your pay cheque, every pay. Set up an automatic transfer into a separate account where you can put the money away and not touch it. Find an account that earns you interest and don’t touch your savings for a year. Having a solid cash reserve will set you up for financial security.
Target your credit cards
There’s good debt and bad debt. A good debt is an investment that is making you money, like a house, for example. A bad debt is something that is compounding and costing you dearly, like credit card debt. Credit card debt is the worst debt as you are getting charged a high interest rate and often the minimum payment doesn’t cover the interest you’re getting charged. Target your credit cards as the first thing you pay off.
Be more demanding of your bank
Push your bank to give you the best rates and talk to them about the solutions that will make your money work for you. You are their customer, demand more, and ask for a discount.
Never automatically renew anything
Think health, home and car insurance for example – they’re all set up to automatically renew each year. Stop automatically renewing and instead take some time to research what else is on the market at renewal time – a lot of companies have offers for new customers. You can also ring your existing insurer and say you want their offer for new customers (9 times out of 10 they’ll agree).
Moonlight – earn extra cash
What can you do to earn some extra cash? Could it be working for four hours a night in a second job, or is there a business opportunity you can tap into outside of your current day job? If you want to make a living you need to work hard, which sometimes means putting in extra hours to get ahead.
Always ask… “Do I need it?”
Before you go and buy something, always pause for 10 seconds and ask the question: do I really need this? What would happen if I don’t? How essential is it? If the answer is no, then take the amount you just saved from not buying the item and transfer it to your savings account.
Be organised, and in control
Never surrender control of your money to someone else. You need to be in control of your finances, and aware of your financial position. As soon as you hand over finances to someone else, you lose overarching control of your situation. Make sure you set your own budget and stick to it.
Learn from business mentors
There’s a reason many business professionals are successful. They have a lot to offer on how to effectively maximise financial performance, so tap into a mentor, capitalise on their knowledge, and apply their learnings to your own financial position.