5 Simple Budgeting Tips

Budgeting is one of the most useful, yet under-used instruments in one’s financial life. A budget allows you to write the blueprint for your financial future. Below are 5 simple budgeting tips that can help you start budgeting right now.

1 - START SAVING

Factors to consider when budgeting monthly:

• Your Age

• Your Income

• Your Financial Obligations

• Your Outstanding Debt

Try save 20% of your income. (This includes company pension or provident fund contributions). If there is no room in your budget for savings, you will struggle to progress financially.

2 - BE HONEST & LIVE WITHIN YOUR MEANS

Learn to live within your means. Being honest with your lifestyle will aid in creating true lasting wealth. The small sacrifice of giving up certain luxuries can free up money that can be used in more effective and long term ways.

3 - UNDERSTAND VALUE

If something outside of your budget is so worth having, it will be worth budgeting for next month. Resist the urge to impulse purchase.

4 - JUST DO IT

There are tools available to draft a basic budget in order to better understand your financial situation.

• Create your own budget with a simple excel spreadsheet

• TRy use an online budgeting tool

• Speak to a Financial Planner

5 - UNDERSTAND CREDIT

Smart credit vs bad credit: Credit cards, overdrafts etc. can be useful tools, but be sure to use wisely. Make sure your budget is working towards crushing bad debt as soon as possible.