How to stay financially afloat when times are tough

IT is usually during this time, the third month into a new year, when all new year’s resolutions go by the wayside – especially financial ones.

This is when we must remember that making our resolutions more realistic from the outset will make our goals more attainable – and our lives less stressful.

So what can we do to stay in the ‘black’ and relieve some of those financial burdens that weigh so many of us down for so much of our lives?

Below are four ways to set the ball in motion.

Budget

For those who do not draw up budgets, this is a great way to gain more control over your finances – and is essential if you continually whittle away your money without anything to show for it.

If you already budget, a pointer to better your budgeting could include prioritising necessities like bond repayments, car installments, groceries and water and electricity bills.

Tip: Include in your budget a realistic amount you would like to save each month because, by doing this, you are not just hoping to save something, you are actually forcing yourself to save, thereby creating wealth.

Think of the future

No matter how small your initial monthly savings are, at least you will be saving and you can always increase this amount.

By building up savings, you are giving yourself an emergency reserve for those unexpected bills.

Make use of a bank account with a notice period – even if just 24 hours – as this will prevent you from withdrawing your funds and spending on a whim. Chart your progress as this will allow you to see how far you have come.

Deal with debt

Do not just sweep it under the carpet. By actively dealing with debt – seeing what debt you can get rid of and by not giving in to more debt – you will be getting closer to financial freedom.

One way forward would be to increase the amount you set aside to pay off credit – even if just an extra R50 a month – you can save a lot by paying off debt faster.

‘Quick wins’

Do you have any items lying around that you no longer use and that you could sell? Have a look in your cupboards and garages.

Also consider the financial effects of switching from incandescent light bulbs to energy saving ones, and fixing water leaks, no matter how small.

Remember that every small change you make to better your financial situation can have huge positive effects on your bank account and your stress levels.

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