Managing money wisely is challenging, and the current financial climate doesn't help. Job opportunities are limited, and we’ve come to accept that additional expenses - due, for example, to load shedding or water cuts - are inevitable.
Notwithstanding, Wayne Landsberg, financial adviser and owner of Destination Wealth, notes that it’s vital to make conscious financial decisions. He offers five strategies to align your money habits with your financial goals.
Tip: Contributing to an investment account is an important step in managing your money responsibly.
Be realistic about your budget
It’s important to develop a workable budget that includes both expenditure and savings goals.
“Utilise expenditure applications or banking apps to track your adherence to your budget, and create a sense of accountability,” Landsberg advises.
Take advantage of loyalty programmes
Loyalty and reward programmes abound, and it’s well worth using these at the shops you frequent, at the very least.
In addition to supermarket programmes, such as Pick n Pay’s Smart Shopper and Checkers’ Xtra Savings, loyalty rewards are available through various service providers, such Discovery (Vitality), and FNB (eBucks).
“Optimal use of these requires a decision to participate actively and maximise their benefits,” says Landsberg.
Pay attention to small and frequent purchases
Be mindful of your small, regular purchases, such as a morning coffee or a lunchtime takeaway meal. These types of purchases accumulate quickly and easily.
Landsberg suggests dividing your monthly entertainment budget into envelopes, or being more cautious during the week, in order to save for the weekend.
Be mindful of social spending
Often, social gatherings encourage excessive spending. Buying your friends a round of drinks at the bar at the end of the week, or sponsoring your work team’s Friday morning coffee, can add up substantially.
“Set boundaries and communicate your intentions to your friends and colleagues, ensuring that you stay within your budget,” Landsberg says.
Learn and adapt
The world of personal finance is constantly evolving, and it’s important to be adaptable. This requires continuous learning, keeping an eye out for the latest financial strategies and opportunities, and a willingness to change course if necessary.
Educational tools are available in many forms, including books, seminars, financial apps, free personal finance blogs, and financial advice through advisers and planners. Try setting aside a specific time slot regularly, to make use of these.
Tip: Checking your credit score regularly is an excellent money habit to cultivate.