Budget Insurance Marketing Manager Susan Steward advised big spenders to make changes today.
‘No matter where you are financially, it is possible to improve your situation.
‘Whether your first step in the right direction was taken on 1 January, or whether it has not yet been taken, it is possible to have a more financially friendly year, starting now.
‘If you are not sure where to start, a budget is always a smart first step.
‘This will help you feel more in control, knowing where your money is going each month and ensuring you live within your means.’
Steps to creating a budget:
• Write down your net income – the money you get after tax or any other deductions.
• Track your spending. Start by listing all your fixed expenses such as rent, bond, car payments, insurance and so on. Then list your variable expenses such as the expenses that could change from month to month, such as groceries, your phone bill and clothing. Always keep track of what you are spending and if you are unsure, look at recent bank or credit card statements.
• Look at your income versus your spending, and set your goals. It could be a short-term goal such as paying off your credit card, or a longer-term goal such as saving for a house deposit or setting up a retirement fund.
• By referring to your goals and how much you need to budget for fixed and variable expenses, you can see where you have money left over, and how it can be used to reach your financial objectives. You can also see where you can potentially cut back or make changes.
Small tweaks to make a difference
• Shop online and take advantage of specials on items that you need.
• Not hitting the gym that much? Cancel the subscription and go for walks instead.
• Schedule ‘no-spend’ weekends.
• Take your own lunch to work.
• Write a list before you go shopping, and stick to it.
• Invite friends over instead of going out.
• Be more cautious of electricity and water usage at home.
• Keep your tyres properly inflated – you’ll prolong their life as well as save on petrol.
• Pay your bills on time. You might incur interest on late payment, plus it could affect your credit rating.
• Check your cellphone package and ensure you’re on the right one for your pocket and your needs (do you really need the 200 free SMSes, for example?).
• Chat to your insurance company and ask them if they can adjust your car insurance premium based on the current value of your vehicle.
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