Feeling the squeeze? Five top tips to get a grip on your finances

Here are some useful tips to help you get on top of your finances during these very challenging financial times.

Due to the cost of living crisis, many South Africans are battling to make ends meet and uphold the standard of living they are used to. Rising fuel costs, increasing energy prices and surging inflation all translate into higher living costs and more discomfort for most South Africans.

According to sdmkjfbjdgb My Broadband, the escalating energy crisis in the country has reached unprecedented levels with continued rotational power cuts now hitting the record of 100 straight days of power cuts at usually at higher stages.  The impact of this on the economy is severe but it is also having a mental impact on society.

The increasing interest rates have also made life harder as one’s income has to stretch even further, amid all the other bills that have to be paid. Having a healthy relationship with money helps to get a grip on your finances and to improve one’s financial situation.

TIPS FOR IMPROVING YOUR FINANCES:

SETTING FINANCIAL GOALS

Having financial goals is important to help you know what you are working towards and what you have to achieve within a specific time frame. This gives you direction and motivation to reach your goals.

Create a list of goals that have a deadline. Save these on your mobile/computer/laptop. Be sure to review them regularly and record the dates on which goals have been achieved.

Examples of financial goals might include saving for a deposit on a house, paying off credit card debt or saving for a holiday.

SAVING MONEY

Janine Horn, a financial adviser at Momentum Financial Planning, said that a savings plan is a way for people to grow their money in order to achieve the financial goals they have set for themselves.

Put away money every month for your financial goals and ensure that you include saving as a part of your budget.

WORKING WITH A BUDGET

Budgeting is an excellent way for people to take control of their finances, according to Sebastian Alexanderson, founder and debt counsellor at National Debt Advisors (NDA).

When drafting a budget plan, be sure to include income and all of your expenses.

“When you budget, you know exactly where all your money goes, where you can make adjustments to save even small amounts, and also how to effectively save and leave enough money for unexpected expenses and emergencies.” Alexanderson was quoted as saying in an IOL article.

IMPROVING SPENDING HABITS

Paying attention to your spending habits and tracking your finances will allow you to make the necessary changes to how you manage your money.

You can adjust your spending habits by cutting down on unnecessary expenses or looking for ways to save money on the things that you need.

IMPROVING FINANCIAL LITERACY

South Africans can stay informed about their finances and money matters by making use of any resources available to them. There are free financial literacy resources available online, or people can contact their banks if they are unsure about anything.

“Financial literacy affects every aspect of our lives, from education to where we live and how we access medical care. The less debt we have, the less stressed and heathier we are. Even just taking a few minutes every day to educate ourselves better about financial matters is an investment in our futures.”  said Craigh Chidrawi, head of retirement at NMG Benefits.

Begin now and start reaping the rewards which result from having a healthy relationship with money.

ALSO READ: Wealth trends: Economic survival tactics of SA’s super-rich