His advice comes in light of the tough economic times facing the country, which he said resulted in many South Africans either being more cautious with their money or resorting to acquiring credit rather than smart budgeting.
Craggs also explained the importance of having a basic budget and its usefulness in saving and paying off debt.
“Whether you are trying to get out of debt, save some money or simply stay in the green, a basic budget is one of the most underrated tools for gaining control of your finances, managing expenditure, saving and avoiding debt,” Craggs said.
The spokesperson proceeded to offer consumers a few tips for better budgeting, including drawing up a list of fixed expenditures and other monthly deductions and weighing them up against your income.
If these expenses are more than your income, then he stressed the need to have a plan in place to try and reduce them.
“Some areas are easier to trim down on, so concentrate on them first; remember, even the smallest adjustments can make a meaningful difference in the long term,” he said.
Another tip Craggs offered was channeling any extra money from the trimmed expenses towards paying off debts faster, especially those with the highest interest.
He also urged consumers to ensure that their budget has a goal, adding that working towards it provided direction and would give consumers a sense of accomplishment.
Craggs concluded by stressing the impact that even the smallest adjustment can have on a budget, saying, “The small changes and sacrifices you make now will be worth it in the long run.”
Other tips Craggs listed include:
- Be honest about your debt obligations and your expenses so you have a clear and realistic picture of your financial situation.
- Deliver on your promises and offer rewards. If the goal was to save enough money to go on a holiday, then you must deliver on your promise when that goal is reached.
- Various cellphone applications are available to help you easily track your income and expenses. Some are freely available on both Android and iOS for an up-to-date report of your financial health.
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