Six money mistakes to avoid before your next spend

Payday can make a weekend away, dinner with friends or a quick online purchase feel easier to justify. Then the debit orders arrive.

For younger South Africans especially, **money decisions **often stretch beyond personal spending. Blackbullion South Africa’s Zaka Index 2.0 found that nearly two thirds of respondents experienced money stress every day or several times a week. Four in five also contributed to household or shared living costs at least sometimes, Cape {town} Etc reports.

The study, conducted with the Sanlam Foundation, surveyed 1 544 people across all nine provinces, with 90% aged 18 to 34.

Before you tap* ‘pay’*, check these six things

1. Your balance is not your budget

Upcoming transport, groceries, electricity and repayments may already have a claim on that money.

2. Small instalments can add up

Four R300 payments become R1 200. Check the total repayment, interest and fees before signing up.

3. Unused subscriptions still cost

Scan a few months of bank statements and cancel services you no longer use. Three R99 subscriptions would cost R3 564 a year.

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4. Group plans can hide the real cost

Accommodation may be affordable until petrol, meals and activities are added. Set your limit first.

5. Online money advice needs a credibility check

Zaka Index found about half of respondents had acted on online financial guidance. Check who is behind the advice and verify financial providers independently.

6. Emergency savings do not need to start big

Fewer than one in four respondents could cover an unexpected R1 000 expense from savings. Even R25 a week adds up to R1 300 over a year.

As Leana de Beer, founder and CEO of WaFunda, puts it,* ‘You should be able to enjoy your money.’* The trick is making sure today’s spending does not create next month’s headache.

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Also read:

The 24-hour rule: How waiting before buying can save you money

Picture: Edge-training / Pexels

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