You’re at work. Your mobile pings that you’ve just been paid. A few minutes later you receive an email from your favourite online store, promoting payday specials. Feeling cash flush, you scroll through the deals. There’s a limited offer to ‘save 25%’ just for today so you have to move fast. You add an item to your basket.
You proceed to the checkout. While you hover over the ‘buy now’ button, you remember that your monthly debit orders are scheduled for tomorrow. And it occurs to you that you are about to spend money that could be channelled elsewhere. You empty your cart and get back to work.
We are constantly bombarded with advertising messages telling us how we can “save” if we buy something. So, it’s easy for us to fall prey to spending money on things we don’t really need out of impulse or convenience. When you are lured into buying unnecessary items, the unseen truth is that you are not saving, you are just spending.
July is National Savings Month and Coronation is encouraging South Africans to save more in the true sense, by putting money aside every month instead of spending it.
If you find yourself tempted into spending some of your hard-earned money on ‘stuff’ – things that you don’t really need, just take a moment to consider what you could eventually do with that cash if you were to invest it. Allowing it to grow until such time that you can comfortably afford what you truly desire. That is the real meaning of saving.— Pieter Koekemoer, Head of Coronation Personal Investments
Finding unseen places to save
You’re about to go to bed as a notification flashes on your mobile screen. You see it’s a clearance sale, valid only until midnight. It occurs to you that it is probably the tenth invitation to spend to reach you today.
You resist the temptation to buy anything and wonder if you are perhaps spending money without even realising it. So, you open your banking app and look through your monthly debit orders, and you identify at least one subscription that you can’t even remember signing up for. You had no idea your money was going towards so many unnecessary expenses.
Resisting the onslaught of seductive advertising messages that tempt you into spending (overspending) isn’t enough. You need to dig a little deeper into your finances, almost like auditing yourself, to see where your money is going.
There are many hidden ways in which we spend our money unnecessarily. These include memberships, subscriptions, free trials that automatically convert into billings after the first month, convenience shopping because your credit card details are saved online or upgrading to newer models when you don’t really need to.
Replacing consumer FOMO with JOMO
You’re scrolling on social media and notice a friend raving about a limited offer luxury holiday package they got their hands on. Feeling a bit left out that you didn’t see this half-price deal, you click on the advert. You see there are now just three spots left, and that eight other people are looking!
Excited, you open your weather app to see what clothes you should pack for this unexpected break. It’s clearly not the best time of year to visit that city. And the hotel is located far from the key attractions. You realise this trip may end up costing a lot more than the all-inclusive price tag implies. And in any case, you haven’t budgeted for an overseas holiday this year.
This fear of missing out (FOMO) can lure you into overspending on things you don’t need. Consistently falling for FOMO is at the cost of your future financial wellbeing. The perfect antidote is to embrace the joy of missing out (JOMO) – by foregoing overspending today and investing your money instead.
To uncover saving in the true sense, visit www.coronation.com to see the bigger picture. Coronation is an authorised financial services provider.