South Africa: Get Your Finances in Order By Sticking to the Basics Around Budget, Emergency Fund and Short-Term Debt

To start the year in a more financially stable state, try this structured approach.

Question

I would like to get my finances in order this year. What is the best way of going about it?

Answer

I recommend following a systematic approach towards managing your finances and would suggest that you do the following.

Draw up a budget

The first thing you need to do is draw up a budget. You need to know how much money is coming into your household each month and how much is going out. You cannot achieve any level of financial wellness if what is going out exceeds what is coming in.

If you do not have a budget, get hold of your recent bank and credit card statements and list the regular expenses that go off each month. Compare this with the money that comes into your household. If what goes out exceeds what comes in, you need to look at your budget and make some adjustments.

I have a budget template that I will be happy to share with you to get you started. Just drop me an email.

Protect your earnings

Your ability to earn an income is crucial to your financial wellness. Should something happen to you and you are unable to earn...

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