It’s 2018 – let’s budget!

If life doesn’t throw you lemons, cut down on tequila.

This, in a nutshell, is my budget-approach for 2018.

Although I am not due for a raise, I am devoting myself to having more money. The only way to get that done will be to budget.

As a budgeting beginner, I realised that there are millions of hints and tips out there. I have narrowed it down to my seven favourite budgeting tips.

Hopefully, I’ll be telling you all about how it worked out for good in December.

• Tip #1: Pay back the money. Prioritise settling your debts. If possible, increase your monthly repayment. The more you pay per month, the sooner you’ll be done. The sooner you’ve repayed your debt, the more you will have saved in interest.
• Tip #2: Make your home your hangout spot. As a single young woman, I find it tempting to eat out regularly. However, this is a waste of money. Eating out usually entails an over-priced glass of wine or two. Rather than going out, stay in. If you are feeling social, invite your friends over for a bring-and-braai.
• Tip #3: Get a piggybank. Be sure to deposit the coins in your wallet into a piggybank every week. At the end of each month, empty the piggybank and either deposit the money into a savings account or use it to pay for some necessities.
• Tip #4: Have a mall day. Single out a day to be spent comparing prices of the items your puchase most often. Make a list of these and shop around until you figure out which store has the lowest prices. Write the prices down for reference. This guideline will prevent you from overpaying elsewhere.
• Tip #5: Lists. Compile a weekly and monthly shopping list. If you shop without a list, you will be more likely to splurge on items you do not need. By sticking to one, you will prevent unnecessary expenses.
• Tip #6: The 50/30/20 rule. Calculate your income post-deductions. Earmark 50 per cent for necessities, 30 per cent for nice-to-haves and save 20 per cent. Whether this is practically possible may depend on how much you earn.
• Tip #7: The 52-week challenge. Deposit an amount into a savings account every week. In the first week of the year, save R520. Save R510 the next, R500 thereafter and so on. Your last deposit will be R10 when December comes to a close. If you have succeeded, you will have R13 780 in 52 weeks!

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