Money leaks are simply any amount of money that you spend and unable to identify what you spent that money on at the end of the month when reviewing your bank and/or credit card statements. Even if you can’t physically see the money oozing out of your pockets, you have sprung a money leak the moment you have those unidentified expenses.
Is your money leaking?
Money leaks have to be patched. But, before you can patch your money leaks, you’ll have to identify their source. Fortunately, most are easy to find; here are five that may have slipped under your radar without feeling it.
- Money spends on airtime/data– Ever wondered how much money you spend on data and airtime per month. I did the exercise to check how much l was really spending on this little devil money leak. I was surprised by my total of that little airtime l buy almost every day accumulating to R500. For me, that is a very big pinch on my pockets which l could have channeled to savings. Here is what l have done to patch this leak. I now buy data that last me for the month and only spend R100 on data. I buy airtime of R100 for the month and make use of WhatsApp to chat with family. Yippee, that’s now R300 GOING TO SAVINGS!!
- Buying lunch and breakfast– if you are working and find yourself buying lunch and breakfast every day. You leaking some money which you could have put to your savings. I thank my mum for teaching me a great lesson of always carrying lunch to work and that saves me a lot of money. Just doing a simple calculation of how much money you are wasting. Picture this: you buy breakfast for R20, and lunch for R30 every day. From Monday to Friday you would have spent R250, then in a month, its R1000 calculate that by 12, in a year you have simply stolen R12000 from your savings. Let’s be financially savvy every dollar matters
- Money on sweets or chocolates– l am a chocolate lover so l just have to put this. Cause it’s something l had to patch on my budget. Each stop on the garage to fill up, l would always find myself in the store grabbing a bar of chocolate. I checked all those small amounts and was amazed that accumulated to R300. As l said before for me any amount matters, so l had to revisit my spending on this. Now l buy a packet of sweets and chocolates and at most l spend R100. Yippee, that’s R200 l manage to patch and can find itself to the savings.
- Money On Bank Charges– Did you know that the cheque cards have different bank charges they attract depending on the group and colour? That is measured according to your yearly income. What the so-called private bankers don’t tell you is how much bank charges the upgrading of your card would cost. The normal cards our blue and gold ones most of the South African banks do charge R100 – R150 and if you upgrade to silver and black cards your bank charges will be from R250 – R450. For me to be honest the card colour doesn’t really matter because they all serve the same purpose, so why would l give my money away. You must always be careful and know questions to ask if your bank asks for an account upgrade. The most important question to ask is “what it is in for your money?”
- Subscriptions you don’t use – many people do have gym membership they don’t use. That is throwing away money that could have gone to savings. Always ask yourself if the subscription you are signing up for, you can commit to it. Cause it does not make sense to subscribe to something and not be using. Let’s patch up that money leak.
Now is the time to start doing things differently to win your money game. Hopefully, this whole exercise wasn’t too strenuous for you. I bet that if you took a good hour and did some solid investigation, you could find at least R100 in savings. Now that you’ve either found those savings let’s put that money into action and make it work for you!
A major difference between wealthy people and the rest of us is that wealthy people put their money to work. Wealthy people may go to work to earn money, but every day their savings are also going to work, making them even more money through their investments. Fewer money leaks mean more money in your pocket.
By Talent Tarie Manyonga