- SPEND LESS THAN YOU EARN
Make a habit of doing this so that you have money left in your account each month to save and help you stay out of debt. Keep your expenses to the bare minimum by budgeting carefully and sticking to your budget.
- KEEP TRACK OF EVERY RAND
Financially successful people know exactly what they spend and why. At the end of the month, read your bank and credit-card statements and identify each purchase. Ask: Was it sensible? Was it value for money? Did it add real value to your life? Always look for maximum value out of every rand spent.
- MANAGE YOUR RISK
An unexpected event can derail even the best financial plans, so it is responsible to insure risks to your earning ability, such as death, disability, retrenchment, illness, accidents or even maternity leave. Get the right insurance cover at fair value and regularly review your cover and your premium. In addition, start a big healthy emergency fund and look after your health.
- FUND BAD HABITS
Bad daily habits are usually also unnecessary expenses. Some are smaller, recurring expenses, such as smoking, buying lunch or coffee, or buying pricey convenience foods or name brands. Others are overinflated, for example an electricity account that could be reduced, or unnecessary luxury items, like excessive magazine or TV/streaming subscriptions. Cutting the funding to these bad habits will boost your finances.
- BELIEVE EVERYTHING YOU HEAR
Dedicate some time to educate yourself on financial matters. It is as simple as attending a workshop, taking a course online or reading a book. Never make financial decisions based on advice from a single source. Do research and consult others, such as personal-finance books, independent personal-finance sites and independent financial advisers.
- LOSE SIGHT OF YOUR FINANCIAL GOALS
Keep in mind your long-term financial goals, such as saving for the kids’ education or a comfortable retirement, especially when these goals require short-term sacrifices. Whenever you’re about to buy something not budgeted for, pause and think about your financial goals. Do you really need what you’re about to buy? Could you get better value elsewhere? Could it wait?
The information is shared on condition that readers will make their own determination, including seeking advice from a healthcare professional. E&OE.