Handle your money, stress

Tips to make a plan you can stick to – and focus on what you can control.

Tips to make a plan and stick to it because your money can’t control you.

It is very difficult to solve a problem if you refuse to accept that you have one. The panic we sometimes feel about money issues can prevent us from addressing the problem and result in things getting worse. Debt and the difficulties of balancing our budget affect most of us these days. However, it’s possible to remove the fear and confusion and get on top of the situation.

Acknowledge, then talk

Denying your worries or acting as though they aren’t justified will only make matters worse. Recognise that you’re stressed and that it’s okay to feel that way. It’s very difficult to solve a problem if you refuse to accept that you have one.

No matter what is causing you stress, you’re almost certainly not alone. There’s tremendous value in simply sharing your experiences – your fears and personal pains – with sympathetic friends and others dealing with similar problems.

It’s a great way to relieve some of your burden, put your problems into perspective and see how others have dealt with similar situations.

Be realistic and honest

Determine what you can reasonably achieve and then dedicate yourself to following through every month.

Make yourself a promise, for example: “Each month I will spend less and put the difference toward my debt so my balance declines by at least R100.”

Just like a crash diet or intense new workout routine can lead to burnout, you don’t want to set overly ambitious financial goals that you may abandon in a few weeks or months.

Leaning on your relationships can help keep you on track. Hard tasks become easier with the support of friends and family, so share your goals. There’s no one better to hold you accountable and remind you what you’re sacrificing for.

Plug the hole

If you’re stressed about money, control how much you spend. There are some expenses that are fixed, such as your bond/ rent and car payments.

But you can control things such as groceries, eating out and shopping for nonessentials. You can even cancel your DStv and cellphone contract.

Go back and re-evaluate your expenses. Don’t let your money control you – control your money. Once you’re in control, build. If you have adequate savings, you’ll worry less about unexpected events or the sudden loss of income. Ensure you have enough savings to cover monthly household expenses if the unexpected happens.

Don’t quit

Once you have a routine or plan, keep your health and finances top of mind. You don’t have to micromanage either one – there’s no need to fixate on your investments’ daily fluctuations. Just ensure your everyday actions, on average, keep you on the right track for long-term physical and financial wellness.

If you’re tempted to stop investing for a long-term goal because of an unexpected short-term need, that may undermine your plan’s foundation. You might have to make some hard choices about your spending habits.

Mduduzi Luthuli is a director at Luthuli Capital