Most people want Financial Freedom, but what do we need to do to get there? If you’re like most people, the word “budget” makes you cringe a little, But there’s no need to fear! A budget is actually a good thing—it frees up your money so you can do more with it. With a budget, you can have the satisfaction of knowing that your money is out there working for you. Rather than wondering at the end of the month where it all went.
“Good planning and hard work lead to prosperity, but hasty shortcuts lead to poverty.”
Find your WHY
If you’ve ever faced a significant crisis in your life you’ll have experienced the power of purpose to tap reserves of energy, determination and courage you likely didn’t know you had. Your mission was clear. Your goal was compelling. Your focus was laser-like. A clear sense of purpose enables you to focus your efforts on what matters. Compelling you to take risks and push forward, regardless of the odds or obstacles.
Knowing your why is an important first step in figuring out how to achieve the goals that excite you and create a life you enjoy living (versus merely surviving!).
Research and Awareness
If you want to win with money, you have to change your actions with money. Ever felt like you should have more money than you do and no clue where it all went? I sure have. The best way to know where all your money is going is to start tracking it.
Knowing where every Rand of your money is going. A R5 here a R25 there all starts to add up and before you know it you have spent hundreds of Rands on unimportant thing.
Eliminate or Reduce
One of the biggest challenges in personal finance is figuring out ways to spend less money. Once you start tracking your spending, you can start to cut or reduce expenses. Some expenses might seem small and insignificant on their own, but when we add them all up it can be a large amount.
Every Rand counts and when you see where it is going you can cut out the unnecessary things.
Establish a Budget
A budget doesn’t control you; you control it. It’s a guide you set up to make sure your money is doing what you’re telling it to do. Most people set up a budget with Rand limit on an category and then spend the whole month trying not to go over that. For example you may set a limit on groceries of R1,500, when you actually spend R2,500. And then find that you are not able to stick to the budget and feel that budgeting doesn’t work.
However when budgeting you need to tweak it, you need to personalize it to what works for you. Budgeting is the true reflection of your life. Your budget, where you money goes, reflects what is important to you. Allow yourself to be creative when setting up a budget that works for you.
Do you now how much interest you are paying on your debt? Do you know how much you owe? When is it due? Can it be reduced? Can it be negotiated? Can it be consolidated?
Taking a look at your debt can be scary. Most people don’t want to see how much debt they have or deal with it
So the first step is to list all your debt and then create a plan to eliminate it.
One of the best ways to save money is to set a goal. Start by thinking of what you might want to save for. —You might want to plan for a vacation or save for retirement. Then figure out how much money you’ll need and how long it might take you to save it.
Maintain and Succeed
By understanding how much money you have and where it’s going, you can unleash the full potential of every paycheck. You can make your money work for you. Starting a budget today can help you live your best life—now, and into the future.