Steps towards financial freedom
Get to a quiet, uninterrupted place and list all expenses that you might have. Include even airtime, drinks and petrol so that you can reflect on whether such spending is justified.
Separate items into three categories, i.e. essential, financial and flexible spending.
Don’t be shocked by your spending patterns as the first step is to help you realise where you stand financially.
Write out your net pay after stop orders and if you get marital/girlfriend allowance of maintenance, add the amount.
Split income according to 5020-30 rule. If, for example, you get E6 000 after all deductions, separate the money as such; E3 000, E1 200 and E1 800.
Look at how much you have been spending on the different items on your expenses and reflect on how these fall into the different amounts. For example, look at how much you are supposed to be using on essentials as opposed to flexible spending.
Work on a plan which allow for money to be saved while cutting back on frivolous spending.
Look at groceries, look at whether they are all necessary and if you can afford to always have such expenses; change meal plans if necessary.
Look at your clothing accounts how you can settle them all and instead try paying cash.