Your budget is an important financial tool that helps you manage your spending, debt and savings every month.

How to draw up a budget

  • List your income, which is how much you earn each month.
  • Then list and add up your expenses including housing, transport, food, mobile phone, education, entertainment, debt repayments and savings.  
  • If your expenses are greater than your income look for ways to either reduce these or increase your income.
  • Save any money left over.
  • Now track your spending every month to make sure you are sticking to your budget.

Use the envelope method to stay on track

Stick to your budget by using the envelope method.

Put the monthly budgeted amount for each expense in an envelope.

When it is spent wait for the next month before spending any more. For example, if you budget R1000 for food every month, put this amount in an envelope and when it is spent, wait for the next month before you spend any more money on groceries.