As the final part of this series (part 1 and part 2), here are a couple of immediate quick-fixes for your finances. The first few are simple ways to reduce your expenses, with almost immediate effect:

1. Bank charges.

These are often the bane of your existence, and you feel you just have to accept them. While they’re not going away anytime soon, there are a number of ways to bring down your charges. Do an audit of your statements, and see where the bulk of your charges are coming from – is it cash withdrawals; cheque fees; over-the-counter transactions? Cut down where you’re wasting unnecessarily – draw cash once a week instead of every two days; use EFT’s instead of cheques; avoid doing in-bank transactions as far as possible. If you’re doing a consistently high volume of transactions, ask at your branch about an all-inclusive package. It may seem like a high fee to pay, but could work out to being a substantial savings instead of being charged for every transaction.

2. Overdraft charges.

Again, check your bank statements. Recently, banks added a monthly charge (often around R20) if you have an overdraft facility, even if you’ve never used it. If you plan on using it, it’s something you’re going to have to live with; but if you’re never planning on going into overdraft, get it cancelled immediately.

3. Insurance premiums.

Phone your insurance company, or check your policy document – are you insured for market value or replacement value? How long ago was that value set? Often, you can be insured for market value, but the deemed market value in your policy has been unchanged for a few years, and doesn’t reflect the true current market value (which will have dropped substantially over a few years). It’s pointless being over-insured, as most insurance companies will only pay out to a maximum of current market value anyway, regardless of what your premium was tied to. Make sure you question every assumption they put forward to you.

4. Cellphone usage.

We all have one, and it gobbles up a fair portion of our wallet every month. But ask yourself: Do you really need to phone home three times a day? Could that brief conversation wait until you next see the person? I’m definitely not saying that you should stop all communication altogether, but surely a quick SMS would suffice in many instances? Also, be aware of the difference between on-peak and off-peak rates – it can be as much as 300-400%, so only call during peak times when you absolutely have to!

Another way to get your finances on track is to increase your income. This doesn’t have to mean getting a second job (or third in many cases!), but think of a few things you could do in some spare time to generate an extra income stream – no matter how small it may be. Do have any skills that you could use as a freelancer (writing, bookkeeping, design, etc.)? How about a hobby that you could turn into a profitable mini-business? If you come up dry in terms of ideas, you could always fall back on the old favourites of house-sitting, baby-sitting, dog-walking, etc. I guarantee you, somebody in your neighbourhood (most likely even your street) could use your services, and would be willing to pay for it…

A huge thank you to Gareth Cotten from Good Advice;

Gareth offers a fantastic financial service, so if you’re interested in saving some money or knowing how to work your money better, then I’d highly recommend his services – he really is brilliant. Oh, and it’s not just financial, he can also help you with life or health coaching :) Gareth also writes for Money Web, you can read some of his articles there too:

• How to save on your electricity bill
• The price of pride..
• How to set goals..

Gareth’s details:

• Website – http://www.goodadvice.co.za/
• Telephone – 084 444 5466
• vCard – click to download

Here are the other 2 parts:

1. Finance Coach, Introduction
2. 10 Steps to drawing up a budget and sticking to it