While many South Africans have the best intentions at the beginning of the year to cut back on spending and try to save more, being able to take full control of their budgets can sometimes be easier said than done.<\/p>\n
According to Vera Nagtegaal, executive head of online financial comparison website Hippo.co.za, when it comes to saving, a written budget is essential for managing your hard-earned cash and working towards short- and long-term goals, including paying off unnecessary debt.<\/p>
\u201cThere are many common mistakes people make when it comes to budgeting, which can easily be avoided,\u201d said Nagtegaal.<\/p>\n
ALSO READ:\u00a0Following their passion for performing<\/a><\/h4>\nHere are some things to think about when it comes to your budget:<\/p>\n
1. Analysis paralysis<\/strong><\/p>\nIt can be tricky to draw up an effective monthly budget, but experts believe that any budget is better than no budget.<\/p>\n
Nagtegaal advised that the key to fixing this is for people to analyse their situation to see where they went wrong.<\/p>\n
\u201cOnce you have identified the challenges and financial weak spots, work on improving those areas,\u201d Nagtegaal said.<\/p>\n
\u201cRemember, your budget may not work at first and it may require a lot of adjustment.<\/p>\n
\u201cYou\u2019ll have to manage your expenses according to your income, and then live according to the budget you set.<\/p>\n
\u201cDon\u2019t give up if it doesn\u2019t work out immediately,\u201d she advises.<\/p>\n
Nagtegaal noted that budgeting is often considered to be an intricate process, but thinks that people can sometimes make it too complicated for themselves.<\/p>\n
\u201cYou can simplify things by making use of a budgeting app or something as simple as a notebook.\u201d<\/p>\n
She also suggested drawing up a personal income statement.<\/p>\n
\u201cIf you think about it, businesses keep a tight grip on their finances by utilising various statements for the different areas, such as cash flow and expenditure statements, so why not do the same with your personal finances?\u201d she said.<\/p>\n
\u201cYou can start by comparing income statements online to familiarise yourself with the process and tools available.<\/p>\n
\u201cThe more you become educated in better managing your personal finances, the better your chances at successful budgeting.\u201d<\/p>\n
2. Life changes<\/strong><\/p>\nBudgets often break down when people experience major life changes, like the birth of a child, death or divorce.<\/p>\n
This, however, is the time when planning your finances can be crucial.<\/p>\n
Nagtegaal said this would include making provision for things like medical and funeral expenses, unexpected moves or legal expenses.<\/p>\n
Having an emergency savings fund is a great start to being able to better manage finances during major life changes.<\/p>\n
3. Impulse shopping<\/strong><\/p>\nSticking to a budget may be a bit of a challenge for impulsive shoppers.<\/p>\n
\u201cGet into the habit of evaluating whether you really need an item when shopping online,\u201d Nagtegaal said.<\/p>\n
\u201cReviewing your budget will help at this moment.<\/p>\n
\u201cConsider how much the purchase could set you back.\u201d<\/p>\n
The same thing applies to sales.<\/p>\n
If it wasn\u2019t something that you budgeted for in the first place, is it really something that you can afford and need?<\/p>\n
ALSO READ:\u00a0Eye-catching innovations seen at local science fair<\/a><\/h4>\n4. Giving<\/strong><\/p>\n\u201cYour love for spoiling those close to you could also get in the way of sticking to your budget,\u201d Nagtegaal warned.<\/p>\n
\u201cThe only way to survive here is to make leeway for gifts you absolutely have to buy, like your child\u2019s birthday present.<\/p>\n
\u201cThere should still be limits though, so don\u2019t overspend when you really can\u2019t afford something.\u201d<\/p>\n
Consumers are urged to make use of budgeting and work towards healthier financial habits.<\/p>\n
\u201cIf your previous attempts have been unsuccessful, try again,\u201d Nagtegaal said.<\/p>\n
\u201cYour budget should be tested and improved on an ongoing basis to fit your lifestyle changes and circumstances.<\/p>\n
\u201cMaking your budget a priority will assist you in the long run to secure your financial future.\u201d<\/p>\n
Hav<\/strong>e a story?<\/strong><\/p>\nContact the newsroom by emailing: Melissa Hart (Editor)\u00a0<\/span>germistoncitynews@caxton.co.za<\/a>\u00a0<\/strong>or Leigh Hodgson (News Editor)\u00a0<\/span>leighh@caxton.co.za.<\/a><\/strong><\/p>\nAlso follow us on:<\/p>\n
It can be tricky to draw up an effective monthly budget, but experts believe that any budget is better than no budget.<\/p>\n
Nagtegaal advised that the key to fixing this is for people to analyse their situation to see where they went wrong.<\/p>\n
\u201cOnce you have identified the challenges and financial weak spots, work on improving those areas,\u201d Nagtegaal said.<\/p>\n
\u201cRemember, your budget may not work at first and it may require a lot of adjustment.<\/p>\n
\u201cYou\u2019ll have to manage your expenses according to your income, and then live according to the budget you set.<\/p>\n
\u201cDon\u2019t give up if it doesn\u2019t work out immediately,\u201d she advises.<\/p>\n
Nagtegaal noted that budgeting is often considered to be an intricate process, but thinks that people can sometimes make it too complicated for themselves.<\/p>\n
\u201cYou can simplify things by making use of a budgeting app or something as simple as a notebook.\u201d<\/p>\n
She also suggested drawing up a personal income statement.<\/p>\n
\u201cIf you think about it, businesses keep a tight grip on their finances by utilising various statements for the different areas, such as cash flow and expenditure statements, so why not do the same with your personal finances?\u201d she said.<\/p>\n
\u201cYou can start by comparing income statements online to familiarise yourself with the process and tools available.<\/p>\n
\u201cThe more you become educated in better managing your personal finances, the better your chances at successful budgeting.\u201d<\/p>\n
2. Life changes<\/strong><\/p>\n Budgets often break down when people experience major life changes, like the birth of a child, death or divorce.<\/p>\n This, however, is the time when planning your finances can be crucial.<\/p>\n Nagtegaal said this would include making provision for things like medical and funeral expenses, unexpected moves or legal expenses.<\/p>\n Having an emergency savings fund is a great start to being able to better manage finances during major life changes.<\/p>\n 3. Impulse shopping<\/strong><\/p>\n Sticking to a budget may be a bit of a challenge for impulsive shoppers.<\/p>\n \u201cGet into the habit of evaluating whether you really need an item when shopping online,\u201d Nagtegaal said.<\/p>\n \u201cReviewing your budget will help at this moment.<\/p>\n \u201cConsider how much the purchase could set you back.\u201d<\/p>\n The same thing applies to sales.<\/p>\n If it wasn\u2019t something that you budgeted for in the first place, is it really something that you can afford and need?<\/p>\n 4. Giving<\/strong><\/p>\n \u201cYour love for spoiling those close to you could also get in the way of sticking to your budget,\u201d Nagtegaal warned.<\/p>\n \u201cThe only way to survive here is to make leeway for gifts you absolutely have to buy, like your child\u2019s birthday present.<\/p>\n \u201cThere should still be limits though, so don\u2019t overspend when you really can\u2019t afford something.\u201d<\/p>\n Consumers are urged to make use of budgeting and work towards healthier financial habits.<\/p>\n \u201cIf your previous attempts have been unsuccessful, try again,\u201d Nagtegaal said.<\/p>\n \u201cYour budget should be tested and improved on an ongoing basis to fit your lifestyle changes and circumstances.<\/p>\n \u201cMaking your budget a priority will assist you in the long run to secure your financial future.\u201d<\/p>\n Hav<\/strong>e a story?<\/strong><\/p>\n Contact the newsroom by emailing: Melissa Hart (Editor)\u00a0<\/span>germistoncitynews@caxton.co.za<\/a>\u00a0<\/strong>or Leigh Hodgson (News Editor)\u00a0<\/span>leighh@caxton.co.za.<\/a><\/strong><\/p>\n Also follow us on:<\/p>\nALSO READ:\u00a0Eye-catching innovations seen at local science fair<\/a><\/h4>\n
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