Bounce back financially after holiday season
Bank: January is a great time to re-evaluate and look at your goals for the year; which should focus entirely on budgeting and saving.
The holiday season is over; and as we head back to work and plan for the next school year, we need to relook our budgets given that pay day is still weeks away, says FNB.
The festive season’s month-long holiday with family and friends was great but now consumers need to plan for the year ahead. January is a great time to re-evaluate and look at our goals for the year, which should focus entirely on budgeting and saving.
“We underestimate the value of saving and often end up wishing that we had saved from the very beginning of the year. In the long run the extra money saved could benefit you and your family in cases of planned and unforeseen events,” says Ester Ochse, Product Specialist at FNB Financial Advisory.
Managing budgets on a month-to-month basis can help ensure that you are well-off financially.
Ochse answers six questions to help you manage your finances better in 2018:
1. How do I get started and ensure that I manage my money better in 2018?
Do a situational analysis on your current environment, the year that has been and the year ahead.
Identify areas where you have overspent, wasted money or saved. We often overspend on items that we think are important, but in the end realise that it was not a genuine need.
2. How do I identify my needs, wants and responsibilities clearly?
This model is a great way to sum up what is important and what is needed in your life.
3. What will be my goals and objectives for 2018?
Setting goals constructively helps you focus on what you want to achieve. Identify your long-term and short-term goals upfront.
• Long-term goals could be planning a great overseas holiday, saving for your child’s university fees, retirement, extending your property or buying a new home.
• Short-term goals could be saving for a car, birthday, gifting or home décor, etc.
4. How do I draw up a budget?
Open Excel spreadsheet and type in all of your expenses for the year.
Look at the previous year and identify what your expenses, liabilities, assets and savings were and add this to the 2018 budget sheet. Remember with inflation these costs may go up each year.
5. How do I keep track of my money?
There are many useful apps that will help you keep track of your daily, weekly and monthly spend.
You can also use your bank statement as a way to keep tabs on what comes out of your account. This will help you determine an unconscious spend that could affect your pocket; which will help you stick to your budget and save money.
6. What about the economy?
We live in an uncertain economic environment. As such, we need to ensure that we are well equipped to manage unnecessary expenses should they crop up at any time. Big or small, such expenses can cause a huge dent in your pocket, but if you are prepared you will be able to manage them effectively.
“As we begin 2018, we should be cognisant of the environment, global trends as well as industry-related events that could affect the economy of South Africa; bearing in mind that the cost of living is constantly increasing. Don’t delay saving now for a better future. You may feel the pinch in your pocket or purse today but these initial steps will definitely benefit you in the long term,” concludes Ochse.
Do you perhaps have more information pertaining to this story? Email us at randfonteinherald@caxton.co.za (please remember to include your contact details in the email) or phone us on 011 693 3671.
For free daily local news on the West Rand, also visit our sister newspaper websites
Remember to visit our Facebook, Twitter and Instagram pages to let your voice be heard!
