By Sheldene Alester, Senior Accountant – Ascendant Financial Services (Pty) Ltd

Most people believe that earning more money is the only way to achieve financial freedom. While this may differ from person to person, depending on lifestyle and circumstances, it is not the only path.

Financial freedom and wealth are built on consistent money habits that anyone can adopt and maintain—with discipline. Today, we are faced with a reality where many young people are drawn into debt due to impulsiveness, impatience, and reckless spending. With the pressure created by social media, this is understandable. However, the earlier these small money habits are adopted, the better you set yourself up for the future.

In this article, we explain how this can be achieved.

Pay yourself first – This method involves automating your savings and investments each month. Open a tax-free savings account and set up a monthly debit order. This ensures that saving becomes a non-negotiable expense.

Create and stick to a budget – Differentiate between your needs and wants, and track your spending. This will give you a clear overview of your finances.

Build an emergency fund – Aim to save at least one month’s salary in an easily accessible bank account. This helps prevent taking on additional debt when emergencies arise. If you have children, work towards building an emergency fund equal to three months’ salary.

Start paying off your debt – There are two recommended methods:

• Debt Avalanche (snowballing by interest rate): Pay the minimum on all debts, then put extra money towards the debt with the highest interest rate first. This saves the most money over time.
• Debt Snowball: Pay the minimum on all debts, then put extra money towards the debt with the smallest balance first. This provides quick wins and helps build momentum.

Choose the method that works best for you. Reducing debt frees up more money to save or invest.

Avoid lifestyle creep – Live below your means and focus on increasing your savings rather than your expenses as your income increases.

These are basic steps towards taking control of your finances without earning more money. They require discipline, patience, and consistency.

Start small by investing or saving between R200 and R500 per month. The length of time your money stays invested matters more than the amount, thanks to compound interest.

Keep learning and striving to improve. This will help you stay informed about saving methods, tax laws, and retirement planning.