Are you having cash flow worries or trying to save for something special? Budgeting is very important if you aim to make ends meet, with enough left over to save for that splurge. But we all know that it’s much easier said than done! We turned to Sugendhree Reddy, head of personal banking at Standard Bank, to give us tips on how to make your money last.
Keep a daily log
In order to prioritise your spending, it’s a good idea to keep a daily log of everything you spend money on. “This will help you identify your spending habits and give you a proper idea of areas where you can save,” says Sugendhree.
Practice self control
Sugendhree insists that you must “weigh up your income versus your expenses and make sure that your expenses do not exceed your income.” It sounds easy enough, but buying on credit has become too easy and comfortable, tempting us into debt. The rule is simple: Do not buy things you can not afford. Sugendhree suggests making an honest list of your expenses based on you log book, with necessities at the top and luxuries at the bottom. Buy the items at the top first and if your money runs out before it reaches the luxuries, you must learn to live without them until your financial situation looks better.
Pay your debt smartly
“Many people do not understand that being in debt has two costs, the amount of interest you pay each month and the lost opportunity cost of not saving that money. By making small adjustments to your budgets and pouring any extra money into your debt to settle it faster, you can maximise windfalls and make your money work so much harder. Once your debt is under control and you have a savings plan in place, you are well on your way to building some significant wealth,” says Sugendhree.
Update your budget regularly
Your finances are affected by many things such as the economy, interest, an annual increase in your salary or unforeseen circumstances such as an emergency, which all affect your financial situation. Sugendhree says, “the key is to try save a little bit extra every month so that you don’t impact your pocket. It is wise to update your budget and mindset accordingly.”
Stick to it
This is the difficult part. Much like a diet, a budget only works if you stick to it. Sure, you can fall off the wagon every now and then, but it is important to get back on it! (or else you’ll be left behind!)
Looking for more money tips? Here’s how you can save your cents and see the world.
