Tips on wise money man­age­ment

Weekend Argus (Saturday Edition) - - FINANCE -

The South African Sav­ings In­sti­tute, the Na­tional Credit Reg­u­la­tor and debt coun­selling firm Oc­to­gen have the fol­low­ing ad­vice to en­sure you do not start the new year with a fi­nan­cial road­block:

If you did not save, do not bor­row to spend.

If you did not bud­get for a fes­tive sea­son hol­i­day, stay at home.

Give your chil­dren money boxes to teach them the im­por­tance of sav­ing from a young age.

Avoid buy­ing on im­pulse and re­sist tempt­ing “sale” signs in stores – when you see “sale”, think “save” in­stead.

Bud­get for next year’s school ex­penses, such as fees, sta­tionery and uni­forms, be­fore you al­lo­cate money to spend dur­ing the fes­tive sea­son.

Draw up a bud­get to de­ter­mine what you can af­ford to spend on en­ter­tain­ment and presents. Stick to the bud­get at all costs.

Do not be drawn in by “no de­posit” deals on fur­ni­ture or mo­tor ve­hi­cles, be­cause these deals of­ten end up cost­ing you far more in in­ter­est re­pay­ments over the long term.

Save through­out the year to pay for year-end hol­i­days and par­ties.

Fo­cus on pay­ing off your ex­ist­ing debt be­fore tak­ing on ad­di­tional debt. Your home loan re­pay­ments should be your top pri­or­ity.

If you are hav­ing prob­lems meet­ing your debt obli­ga­tions, speak to your cred­i­tors to try to ne­go­ti­ate a re­pay­ment sched­ule or con­sult a debt coun­sel­lor.

Check that you can af­ford your debt re­pay­ments and spend wisely so that you start the new year on a sound fi­nan­cial foot­ing.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.