Be Savvy With Your Money:

Despite a drop in the price of petrol, South Africans still have the worry of rising food costs, inflation and interest rates.
In these tough times, an unexpected event such as a car accident or being retrenched can send people into financial turmoil.
Being savvy with your money can help you prepare for unpredictable events as well as secure your financial future.
Here’s how you can be savvy with your money:
Budget
A budget is a great way to keep track of your money and monitor your spending. You can choose to do a monthly or weekly budget.
When you draw up your budget, list your expenditures, monthly deductions and income. If your total expenses are more than what you earn, you need to look for ways to reduce your spending. Make sure you leave room in your budget for savings.
Emergency fund
It’s impossible to know what curveballs life will throw at you, but having an emergency fund can help you plan for the worst and hope for the best
You can start an emergency fund by:
– saving your money, you can start small
– setting up a savings account that you can automatically transfer money into when you get paid
– saving at least 10% of your total earnings.
Seek financial advice
A financial adviser helps you focus on the big picture and will build a portfolio to match your goals. People should think of a financial advisor as their own personal trainer, someone that will guide them and keep them motivated about financial planning. An adviser can assist you in drafting a plan that takes into account your circumstances.
Manage your debt
Debt may seem like a never-ending hole that you cannot get out of. If you don’t know where to start, you should start paying off the debts that cost the highest interest rates first. You should also speak to a qualified debt counsellor who can help you set up a debt repayment plan.
Pay with cash
It is important to remember that if you can't pay for something with cash then you can’t afford it.
Only use your credit card for emergencies and pay for items with cash or debit card only. By doing this you are living within your means and not getting into unnecessary debt.