Living in South Africa, you have to admit that financially we are in a tight spot. Our petrol price finds it impossible to stay the same from month to month, and not even to mention our grocery bill with food prices higher each time we make a trip to the store. How with so many variables do we as South Africans get a chance to save money, you might ask?
In times when there is uncertainty, especially when it comes to food and petrol prices, we tend to stray and not focus on the most important financial tool there is, the tool that lays down the law for every household, or that is what it feels like.
Let’s start with your BUDGET. If you don’t have one, well, now would be the time to start. If you do have one but finding it difficult to stick to it, now is the time to start focusing and be completely honest. Like with all things in life honesty seems to be the best policy here as well.
When you just do your budget as you presume things are then it might not give you a clear financial picture, you might even think it is time to buy that new car or lounge suite or maybe even go on holiday.
For you to pull up a fair and honest budget the best thing that you can do is start by taking statements from your internet banking for the last three months. Then do a backward budget, put the money that you spend into categories, like rent/bond, car payments, insurance, loan repayments, credit repayments, etc.
Now if you have not been disciplined, you will see there are times that you just spend money, now those are the ones to look out for. Some of us are emotional spenders and some of us just feel we deserve better and then end up spending, and if that spending is on a credit card or store accounts you might end up having credit bills that you need to repay for something that did not even really help you out.
You need to be honest with yourself about where the money is going then only can you start with your new start.
Once you have done your backward budget it is time to start analysing and deciding. You do not have to do this in one day, as your final budget will only be drawn up over some time.
What to do if my rent and bond or car costs are taking up to much of my available budget?
That is up to you, but just staying somewhere for the sake of an address or just paying a huge car instalment to drive a car that everybody admires, won’t do your budget any favours.
Stop just spending, start getting your mind occupied on different activities, like walking, running or even going to the gym, instead of wasting time and money.
What to do with credit instalments that seems to be taking up more than half your available money?
You can consider taking out a debt consolidation loan, if your credit score is fairly good, you can get one of these loans at a reasonable interest rate. That can help you reduce the instalment that you pay towards credit every month.
Should I use my credit card for emergencies or what if I do not have a credit card for emergencies?
You can use your credit card, but it is always wise to consider the cost involved and especially if you are not sure that you will settle the outstanding balance by month-end it might be expensive.
you can always have a look at our payday loan option, our cost is transparent, meaning you will know exactly what you will have to repay before you decide to take the loan.
One thing about payday loans, that you need to keep in mind is that it is a short term solution and it should be used only over the short term, if you need to take it every month then you might have a bigger financial problem, and it can be good for you to either consider a loan with a longer-term or even debt review.
Our application is a free, no obligation service to you. All the details of the loan amount, term, interest rate etc. will be available to you before signing or accepting the loan.
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