FEWER and fewer South Africans can afford not to pay attention to their cash.
Costs are going up every day thanks to increases in fuel and with talks about a possible rise in electricity tariffs, our cash flow is beinterribly squeezed.
Jeanette Marais, deputy CEO at MMI Holdings, said: “Research by Momentum and Unisa on household finances show that financially healthy households share two factors in common. Firstly, they have a budget and are disciplined about obeying it. Secondly, they consult a financial adviser.”
By writing down your income and expenses, you create a map of your money weather. Income is like the rain and unless you dam it and irrigate it, all of it will drain away back to the ocean, where it is lost.
List your take-home income and all your household and family expenses. List everything you buy and spend money on. Even a little chocolate or bar of soap along with rent, loan and credit repayments, medical expenses once you deplete savings – everything. You may be surprised at how much money is wasted when you aren’t looking.
“If you are running out of income, you need to make some tough choices and cut what does not benefit you and your family.
“It’s also a good time to test the part-time business ideas floating around and see if you can make some money.
“Whatever you do, don’t be ashamed to cut expenses. Involve your children in your budget – it is a valuable education for them,” she said.
