Save Money

There’s No Better Time To Spring Clean Your Finances

spring-cleaning

Spring is around the corner which often causes people to make certain changes to their lifestyle. From cleaning up your home, getting rid of unnecessary items or starting to work on that summer body, spring time is a chance to renew those forgotten New Year’s Resolutions. Spring is a time to create new some new goals. It’s also an important time to review your financial situation. With the December holiday season in a few months time, planning for upcoming expenses and events is very important.

Do A Quick Personal Budget Review

Have a look at your bank statements for the last few months. See how well you did managing your day-to-day expenses and long-term savings accounts. Try to rate yourself in this regard. Have you spent more than you’ve earned? Have you managed to increase your savings? Taken out more debt?

Run through your monthly budget. Start with your income and then start to list all of your debt repayments and living expenses. Now try to match these to your actual results. You’ll be surprised when you discover where all of your money has gone. By acknowledging your spending habits, it is much easier to instal change.

Tips To Improve Your Financial Situation

  • Save first – try to put money into your savings before your expenses go off
  • Stop all unnecessary subscriptions (such as gym contracts, magazine contracts, paid-for apps on your phone etc.)
  • Stick to a tight budget and assess performance each month
  • Try pay off debts quicker
  • Stop taking out more debt
  • Cut down on luxurious expenditure
  • Put money aside and use cash to purchase larger items

Have You Considered Conducting A Lifestyle Check?

Most South Africans live beyond their means. Many working people use all of their money each month and have little to none leftover to save. With the ever-growing influence of social media and television, consumers have a tough time feeling satisfied with their standard of living. By trying to keep up with Jones’s, we are left wanting more and more and more.

Consumers need to be realistic when it comes to spending and budgeting. Stop trying to buy or do things that you cannot afford. This type of behaviour results in many people becoming over-indebted. Consumers take out loans, use credit cards and store cards to buy luxurious branded items, go on lavish holidays and dine at the finest restaurants. If you can afford to do this or do it on a special occasion, then go ahead, but to put yourself out of pocket in doing so is not recommended.

Is Your Debt Out Of Control?

If you have missed debt repayments or are using debt to pay off other debts, you are more than likely over-indebted. This means that your monthly expenditure is more than your current income. By missing debt repayments and using too much debt, your credit score will start to decrease. You will become a high risk to the banks and they will stop lending to you. If you miss too many payments, your creditors can also initiate legal action to recoup the money owed to them.

If you are missing debt repayments, you need to chat to an expert. Debt counsellors can assist you by reducing your debt repayments. They consolidate your monthly repayments into one, affordable amount. This allows consumers to pay off their debt as well as have enough money leftover for living expenses. Make sure you contact a reputable, registered debt counsellor who has your best interests at heart.

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