7. Put a budget in place
Once you’ve determined how you want to live in your retirement, you can work out how much you need to save now to reach that goal. Savings shouldn’t be done at the end of the month based on what’s left in your bank account.
Your savings should be the first line item on your budget. After that, you can budget the rest of your income. Be hard on yourself. Set limits and stick to them. Don’t splurge.
Realistic spending habits are the result of careful budgets. You wouldn’t spend R20 000 in one go without carefully evaluating the purchase, but you’ll happily spend R1 000 on 20 different items. Strict discipline will keep that money in your bank account and working for your future.