Publish Date: 17/04/2018
Manage your money better with a budget
We know we need to budget and in most cases, we know how to start budgeting. But why do we still put off getting a budget started? Many people are often turned off by the term ‘budget’ as a savings option because it is often associated with a lot of effort and commitment to stick to it – something that many people would rather not do.
However, budgeting can help you to understand all your financial habits and allow you to take better control of the money you work so hard for. But if you still need a little more convincing on the benefits of budgeting, these benefits will help you to see budgeting in a new light.
Are you finding it challenging to reach your goals despite the best savings interest rates? Perhaps you’ve been ‘meaning’ to save to buy a bigger home, or a better car for some time now but just when you’ve made some headway with your savings, a financial emergency pushes you right back to the beginning. This is a familiar scenario for many, but you don’t have to stay there. Creating a budget can help you to plan better for these goals and for emergencies. It does this by enabling you to allocate money towards those goals each month, ensuring you monitor your progress and stay on track.
Your spending, saving and investing habits say a lot about your relationship with money. This is what we call your money personality. Think about what drives your spending, saving and investing decisions – is it your emotions, your beliefs? The best place to find out is in your budget. Your budget will show where your money goes each month, it will reveal your money leaks. When money is spent on things you didn’t budget for, budget shortfalls are created and can be corrected.
Would you rather go on holiday or get out of debt? Would you rather pay off your home loan or retire early? Creating a budget can help you make better sense of your priorities and allocate money towards achieving those goals. Remember that you can’t buy everything – everything requires a sacrifice or compromise on another – a budget will help you to make sense of this and prioritise what matters the most to you.
Are you guilty of digging into your savings whenever you run short of cash during the month? If you don’t budget, it’s likely that you do this, or you simply just don’t save money at all. By budgeting, you’re able to assign money towards all your expenses, as well as your savings and investments, while leaving yourself some money to get through the month comfortably without getting into debt or using your savings. A budget can also help you to automate transfers into your fixed savings account.
The stress of finding a way to pay for the rising cost of petrol and food can be hugely frustrating when most of your salary is already planned for. A budget can help you to find control by enabling you to prioritise, track your spending and find your money leaks. It puts a money saving strategy into place that is easy to flow and gives you the chance to plan and prepare for the future.
Just remember: you control your budget. It helps you gain control over your money and allows you to live a more fulfilling life. Isn't it time you put your money where it counts? Your budget can guide you there.
About African Bank
Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.