AL­LAN SHINE’S FIVE FI­NAN­CIAL MAN­AGE­MENT HACKS TO KEEP YOU FROM FALL­ING BACK INTO THE DEBT HOLE:

Finweek English Edition - - MONEY -

FO­CUS ON A GOOD FI­NAN­CIAL PLAN AND BUD­GET AHEAD: “If there are any prod­uct rec­om­men­da­tions, talk about how they are re­mu­ner­ated and by whom, so that you can see from a mile away if you are just buy­ing new things you don’t need again.”

START A SAV­INGS AC­COUNT: Have money trans­ferred au­to­mat­i­cally into your sav­ings ac­count each month. If you spent R500 per month pay­ing off debts, save that money once your debts are re­paid, or de­ter­mine the largest amount that you can af­ford. “Your monthly sav­ings, ex­clud­ing your re­tire­ment con­tri­bu­tions, should be 5% to 1 0% of your in­come.”

DON’T BUY WHAT YOU DON’T NEED: “Now that you are out of debt, don’t start living it up again. It’s a slip­pery slope back to bad debt, and it starts with that choco­late you picked up that wasn’t on your bud­geted shop­ping list.”

SAVE FOR BIG EVENTS: “Once you have three to six months’ salary saved, fo­cus on the next thing. You’ll need to buy things like cars, pay for de­posits on prop­erty to buy or rent, new tyres, school­ing, or some­thing to that ef­fect in fu­ture. You know they are com­ing, whether you like it or not, so save for it. If you think you can pay for it when the time comes but haven’t al­ready started sav­ing, you are in de­nial again and on the fast track back to debt coun­selling.”

“Build a solid fi­nan­cial plan and stick to it − don’t buy any­thing that changes your fixed monthly costs with­out talk­ing to your fi­nan­cial plan­ner first.”

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