Navigating the financial strain of “JanuWORRY” into “FebruWORRY”? Not a chance… we got some good tips to getting through!
Johannesburg, South Africa (31 January 2024) – Can you pay my bills? This is not a line from a Destiny Child song but a plea, from many South Africans, especially in Januworry.
After navigating through the financial strain of a long January, often dubbed “Janu-WORRY,” it can feel like a daunting task to manage money effectively for the upcoming February. The weight of holiday expenses, coupled with unexpected bills and commitments, can cast a shadow of uncertainty over our financial well-being.
However, it’s crucial not to let the residual stress from January dictate the trajectory of February.
Instead, we can view it as an opportunity to reassess our financial priorities, set realistic budgets, and explore creative solutions for financial stability.
And Budget Insurance has some tips for those trying to get their finances on track in 2024:
- To draw up a budget, start with a list of fixed expenditures and other monthly deductions. Have a careful look at what you are spending your money on and identify where you might be “leaking” cash on non-essentials like takeaways, entertainment and satellite TV, as well as on essentials such as your cellphone, groceries and transport. Once you have pinpointed areas where you could be spending less, start cutting back.
- Remember, even the smallest adjustments can make a meaningful difference over the long term. Channel the extra money you have into paying off your debt faster, starting with those with the highest interest rates, first. As your debt repayments start getting smaller, you will have more and more money to allocate to your personal savings and other more worthwhile causes – such as saving for retirement planning, a deposit on a new house or a holiday.
- Set a savings goal for yourself and consider saving as a non-negotiable, essential ‘expense’ on your monthly budget. Whether your goal is to put away R250 or R1000 a month, put it in your budget and stick to it.
- Get creative when looking for ways to cut back on costs. For instance, you could establish lift-clubs to save money on fuel and encourage your family to switch off lights in unoccupied rooms to save cutback on electricity costs. Shop around for bargains and less expensive brands… and don’t forget to use your loyalty benefits to the max.
- Put away your credit cards. Don’t carry them around in your purse or wallet as you might be tempted to spend. Rather, carry a debit card for everyday purchases and save up for the more expensive things you want.
- Be honest about your debt obligations and your expenses so that you have a clear and realistic picture of your financial situation. Prioritise those with high interest rates and ensure that you pay the minimum on your credit and store cards.
Even the smallest adjustments can make a meaningful difference over the long term. Channel the extra money you have into paying off your debt faster, starting with those with the highest interest rates, first. As your debt repayments start getting smaller, you will have more and more money to allocate to your personal savings.
Develop a positive attitude towards learning how to save money and how you handle money and hold yourself accountable. It’s not an overnight achievement, so be patient with yourself.
What matters is taking the first step.
by 