WORDS: Nicky Obel

If you are anything like me, when it comes to taking control of your finances or learning how to budget correctly, my left eye begins to twitch and I start daydreaming about that gorgeous pair of shoes that I just must have. Truth is, it’s been a tough two years – for everyone. And the time to take control of one’s finances, has never been more prevalent.

Take control of your finances

Sounds easy enough, but what does that really mean? This means you are aware of how much money is coming in on a monthly basis. To the very last cent. This also means you know how to control spend, minimise your monthly debt and most importantly (if you can) save for the future. Controlling your finances requires you to have very specific money goals and a solid plan in place in order to achieve the above.

On a budget

It sounds pretty obvious, but putting together a monthly budget can help you gain a feeling of control over your money. By putting your plan or budget together, you allow yourself to prioritise your financial outlay, track how well you are managing this task and clearly see when you need to apply the brakes on your spend. This in turn, leads to allowing you more freedom to plan for the “nice to haves” which we all work so hard to achieve.

Calculated moves

You fi nd yourself sitting at your desk, ready to tackle the budgeting task. Putting a budget together takes a bit of work, but once you’ve done it, you’ll see how easy it is to maintain and adjust it, where necessary. Here are a few steps to bear in mind when tasking yourself with this empowering exercise.

To spend or not to spend

Firstly, you need to determine your income. This not only includes your monthly take home after tax, but any other income you may receive from investments and the like. Then you need to determine your expenses. This does not only include your monthly responsibilities, but also all clothing, lunches, holidays or purchases that slowly creep into our daily lives. Taking a look at a few past bank statements will help you determine this spend more accurately. Now that you have worked out what your monthly income is versus your monthly expenditure it will be far clearer what adjustments need to be made on your monthly expenses.

Creating healthy habits

Putting together a monthly budget will most likely help you see very quickly where you need to adjust your spending habits. You may fi nd that your car is costing you far more than you thought, or that your grocery bill is quite frankly, through the roof. Now is the time to determine what can be cut out or reduced and where you need to research more affordable options. Take a good look at each expense and determine what needs to be changed in order to off er you greater financial security.

Sounds like a plan

Now that you’ve gone to great lengths to gain control of your finances and understand your income and expenditure you’ll need to live this plan. Remember a budget is ever-changing and may need to be adjusted as expenses change, things get paid off or your income increases. So make sure to always refer to it and allocate these changes accordingly.

Credit checks

The majority of South Africans turn to credit in order to help with their debt. Samir Ghrib, Chief Risk Officer at RCS advocates for a renewed focus on credit health and offers the following advice: “Remember, debt repayments are negotiable and creditors are often more compelled to be lenient in a particularly tough economic climate, so leverage the power of negotiation. The temptation to buy things on credit because it’s cheaper can be irresistible, but the responsible thing to do is to live within our means, resist impulse buys and work diligently towards financial freedom”.

So, when it comes to budgeting like a boss, planning for your future or cutting down on unnecessary spend you don’t need to be a financial guru. You simply need to be more financially savvy. Simply put now is the time to empower yourself and maintain a healthy financial standing through proper planning and budgeting. And all you really need to kickstart your plan is a pen, some paper and a calculator.