Every cent counts: The financial guide to tracking your expenses – GoalSave

With the rising cost of living, everyone is looking for ways to handle their finances better and grow their savings. But most people don’t even know where to start.

So, GoTyme Bank, South Africa’s first fully digital bank, shares some budgeting tips and savings tools, like GoalSave and Fixed Deposit, to help more South Africans track their spending, achieve their goals, and improve their financial health.

What is expense tracking?

Expense tracking means recording and categorising everything you spend money on for a period, whether a week, month, or year. This gives you a clear picture of where your money is going and helps identify areas where you can cut back so you have more left in your pocket.

Knowing exactly how much money you’re spending and what you’re spending it on helps you make better decisions with your money. You can prioritise your expenses, reduce unnecessary purchases, and redirect more money towards your savings and investments.

To reduce unnecessary expenses, start tracking every cent you spend. Identify patterns and areas where you can cut back. This might include eating out less, cancelling unused subscriptions, or opting for cheaper alternatives. Small changes can add up to significant savings.

Why tracking expenses is important

There are several key reasons why tracking your expenses is a smart financial move:

1. It raises your awareness of your spending habits and patterns.
2. It helps you create a realistic budget based on your actual spending.
3. It enables you to find opportunities to reduce expenses and save more.
4. It keeps you accountable for your financial goals.

When you know exactly how much you’re spending and what you’re spending it on, you’re empowered to make better decisions with your money. You can prioritise your expenses, cut out unnecessary purchases, and redirect more money towards your savings and investments.

Practical tips for managing your expenses

Here are some effective strategies for managing your expenses:

1. Review your spending regularly – Set aside time each week and month to look over your expense tracking and see how you’re doing. Make adjustments as needed.
2. Use cash for problem spending areas – If you tend to overspend on eating out or shopping, consider using cash instead of cards. It’s psychologically harder to part with physical cash.
3. Wait 24 hours before buying – To curb impulse purchases, institute a waiting period before you buy anything over a certain amount. You may find you no longer want it after a day.
4. Unsubscribe from retail emails – Remove the temptation to spend by unsubscribing from retail newsletters advertising sales and new products.
5. Find free and cheap alternatives – Look for free events and activities in your community, use your local library, and take advantage of free days at museums and attractions. Saving money doesn’t have to mean deprivation.

Budgeting to manage your expenses better

Once you have a handle on your typical monthly expenses, use that information to create a budget. Your budget should include income and expense categories like your bond/rent, food, transportation, healthcare, debt payments, and non-essential spending. Don’t forget to budget for savings as well.

Creating a budget that works for you involves:

1. Listing all income and expenses: Include all sources of income and categorise every expense.
2. Setting limits: Allocate specific amounts for each category and stick to these limits.
3. Including savings: Treat savings as a fixed expense. Aim to save at least 10% of your income.
4. Reviewing regularly: Revisit your budget monthly and adjust as needed to reflect changes in your financial situation.

How a GoTyme Bank savings account can help you reach your financial goals

GoTyme Bank offers two tools to help you manage your savings better. The first tool is a GoalSave account, allowing you to save towards 10 goals at once. It’s free to open and links directly to your GoTyme Bank Current account for easy transfers. The longer you save, the higher your interest rate.

GoalSave rewards you for saving towards your goals. Best of all, the money in that account earns compound interest, so you earn interest on your interest over time.

To start a GoalSave:

• Log in to your GoTyme Bank Current account
• Click “New Goal” and follow the prompts
• Give your GoalSave a descriptive name
• Add money and watch your savings grow!

Accessing your GoalSave funds is quick and easy. You can close a GoalSave any time, and GoTyme Bank will immediately transfer all the money in that account to your Current account. Whether you’ve saved for a short or long period, you’ll receive all the money you’ve deposited plus the interest earned.

A Fixed Deposit account with a guaranteed 10% return

A Fixed Deposit account offers a market-leading 10% interest rate for longer-term savings. You choose an investment term of three months, six months or a year, with a 10% annual rate paid on all terms. Interest is calculated daily and compounded, so your money grows uninterrupted.

To open a Fixed Deposit:

• Log in to the GoTyme Bank app
• Make sure you have the money you want to invest available in your Current Account
• Select “New Fixed Deposit”
• Choose your deposit amount and investment term
• Confirm the details and start earning 10% interest

Whether saving for an engagement ring, car, or child’s education, a Fixed Deposit account can accelerate your progress with a highly competitive 10% interest rate locked in.

Open a GoTyme Bank account today

You can access all these tools to help you budget better and save towards your financial goals by opening a GoTyme Bank account in less than five minutes. The GoTyme Bank app gives you access to seamless transactions, a bank account with no monthly fee, and double Smart Shopper points. Simply download the GoTyme Bank app or choose the option to open an account online to activate these benefits.

All you’ll need is:

• A South African ID number
• An active South African cellphone number
• Be 16 years or older

Reach your financial goals with GoTyme Bank.