Spring has sprung and we’re all looking forward to some time off during the summer holidays.
However, we should also start looking at how we plan our finances for 2018.
Product Specialist Advisory for a local banking branch, Ester Ochse offered a much needed budget plan for the spring season.
2017 has been characterised by uncertain economy conditions which continue to affect the financial situation for many consumers and businesses.
“This causes financial gaps which contribute to a culture of people living way beyond their means. They then get trapped in a cycle of short-term debt,” said Ochse.
She added financial literacy education from an early age was vital to ensure proper management of debt and boosting savings.
“On many occasions we make hasty and impulsive buying decisions that are not necessary and don’t benefit our lifestyle.”
Ochse said understanding the difference between needs, wants and responsibilities is key in changing buying behavior.
At the same time, it would help elevate the importance of money management from a young age.
“It’s important to re-evaluate and refresh the way you use money on an ongoing basis.”
Not only will it help in the long run, but also help you be more organised and disciplined.
ALSO READ: #Parenting 101: Are you teaching your kids bad money habits?
She explained consumers should be able to plan their finances this spring through these easy steps:
Review:
Compare budgets from last and this year for wasteful and unnecessary expenditures.
Base your financial decisions on your needs, wants and responsibilities.
Reuse and Recycle:
Try to be creative and recycle what you have to the maximum instead of throwing it away.
Or alternatively, trade-in the item for some cash which you can save for something else in the future.
Reduce:
Your debt and unnecessary household expenses.
Focus on things that matter like your child’s education, a special family holiday, your retirement or even household groceries.
Being mindful with finances is also important she stated.
“It is a good starting point which ensures that you look at your finances holistically and not as just another chore in your daily life. Planning, ongoing research and evaluation on your spending habits will help you financially and in the long-term,” concluded Ochse.
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