IF YOU are waiting for someone to come and give you financial freedom, be warned: you will probably wait forever.
Financial freedom starts with you and how you manage your money!
Mellony Ramalho, African Bank’s group executive for network sales, told SunMoney that budgeting, saving, clearing debt and consolidating loans are the steps to financial freedom.
She said whatever financial situation you may be in, having a plan in place and sticking to the plan is the answer.
“You need to sit down and have a good, honest look at your finances. If you’ve never drawn up a budget now is the time to do it. The 50/20/30 rule is a good one to follow. Basically, 50% of your budget should go towards paying your fixed expenses such as bond, rent and car repayments, 20% goes to savings and investments and 30% covers costs that vary from month to month such as petrol, groceries, entertainment and eating out.”
Ramalho said learning how to budget properly and sticking to a budget is a discipline that you should practise every day.
“A budget should include current expenses but also retirement, education and other goals.
“How well you manage your money and payments now will determine your future financial wellbeing.”
“If you are feeling overwhelmed and unsure of how to move forward, speak to a debt expert. It is important that you don’t skip payments, make short payments or late payments.”
Financial institutions offer options to consolidate your loans, which may be what you need.
“A big benefit is that instead of having lots of creditors, all with different credit agreements, terms, monthly fees and interest rates, you have only one.”
