Too much month at the end of your money? Here are some tips on budgeting, so you can make it to payday without suffering!
Can I do it?
You don’t have to earn a lot of money to budget. Anyone can do it – no matter where your money comes from. Whether you are getting money from friends and family, small jobs, social grants or a stable income, you can still budget. A budget helps you to:
– Know exactly how much money you earn every month.
– Work out all your monthly expenses.
Where to start?
– Know your needs – things you cannot live without, such as food, rent, school fees, etc.
– Know your wants – things you can live without, such as takeaways, expensive clothes and accessories, entertainment, etc.
– Subtract what you are spending from what you are earning. For example: If your income is R5 000 and you spend R4 100 every month, then subtract R4 100 from R5 000. Balance is R900.
This helps you to know:
– If you are overspending or not.
– Where you need to spend less.
– How much you can save.
– How much you can afford to pay if you need to take out a loan.
Tips:
– Get a template that you can use to write down or type out your budget.
– Budget at least once a month, so you can keep track of everything.
Also see: Saving tips for economic recession
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