How to become money’s boss again

A budget will help you take control of your finances and determine those areas where you can save. Remember, in the end you are in charge of your finances, never let your finances rule you.

Determine your income and expenses

Sit and write down all of your income and what you need to pay throughout the month, like bills for example. Gather all of your credit card statements and receipts so you can put together a detailed estimate of how much you spend every month. This way, you will already be able to determine places you can save.

Albeit obvious, your expenses should never be greater than your income. Divide the expenses on your budget into two groups:

Discretionary Expenses: These are unfixed expenses such as entertainment and other luxuries, which is optional.

Fixed Expenses: These are your monthly expenses such as insurance, bills, food etc. that you need to pay.

Make use of software or a spreadsheet

Luckily, in today’s age, everything has become easier with technology and budgeting is no exception. There are many programs such as Quicken, AceMoney, Microsoft Money and Mint to name a few that can help you do your budgets. Budgeting does not have to be a chore anymore.

Make a spreadsheet that clearly shows your revenue and expenses throughout the year. Keep your info grouped together under different categories, like utilities, revenue and expenses for example to avoid confusion.

Start purging

Do you really need to go to the restaurant this month? Why are you buying lunch at the store every day when you can pack a lunch? Ask yourself these questions and eliminate all those unnecessary expenses.

Find ways to save on your fixed expenses, like lowering your electricity and water usage for example. This will not only benefit your pocket but reduce the pressure on the country’s resources.

Start your rainy day fund

You never know when someone might bump into your car on the highway or if you need to go to the doctor. Your rainy day fund is supposed to cover all of those unexpected expenses.

If you budget properly, you will end up saving more and more every month. You can then start putting a little extra away every month for your rainy day fund.

If you are struggling with debt and can’t find a way out, please contact us on fin@senatorgroup.co.za or phone us on 012 654 0107 and let us help you rise above the black waters of debt.