Apply strategies and pay off debts

Here are some ways to help you achieve this.

With all the twists and turns the economy has taken this year, it certainly hasn’t been easy-going for cash-strapped South Africans.

Now that we’ve kissed the winter blues goodbye, it’s time to welcome the warm season with open arms and there’s no better way to do it than with a spring clean… of your finances!

“Take this opportunity to get organised. The more organised you are, the more in control you are.

“You want to be in control of your finances – not the other way around,” says John Manyike, head of Financial Education at Old Mutual.

1. First things first: get rid of debt

Make sure to pay off the most expensive debt first. “This is the debt that carries the highest interest rate and is costing you the most,” says Manyike. If you received an annual increase in July, you may have a little more in your bank account and can use it to pay off outstanding debt.

2. Cut costs

This is about establishing spending patterns to identify possible areas for saving.

3. Less is more

Examine your monthly budget and if your expenses exceed your income, cut out things you can do without.

4. Remember your saving goals

Make a plan to set up a monthly debit order to an investment account or open a tax-free savings account, increase your pension fund contribution and request the 13th cheque option from your employer, if available to you.

5. Save for the unexpected

Ideally an emergency fund should cover three to six months’ living expenses, says Steward, adding that while this might seem like an insurmountable amount to save, just by putting aside R250 a week, for example, you have yourself R1 000 at the end of each month.

6. Track your spending

Try establish where your unnecessary spending is and reduce it by making small changes to save big.

7. Outdated fees must be phased out

You could be paying subscription fees for magazines you don’t read, a gym you don’t go to or paying for a bank account you no longer use. End subscriptions and use the money in more efficient places.

8. Payments that don’t reap rewards

Always read the fine print or terms and conditions when it comes to gaining loyalty points from reward programmes. Falling for a quick programme can have you overspending for smaller returns. Sometimes it’s not worth it.

9. Know the money lingo

Research, read and seek advice on the best methods to save your money and make it go further for longer. – Moneyweb