Have a family budget, it helps cash flow, savings

Pieter Woodhatch

Most households may increasingly find it hard to keep their heads above water.

Families should make every effort to track what every cent is spent on. The first step is creating a budget and sticking to it as a family. Some families may be already stretched but they too must maintain financial discipline. A budget is a good way of identifying where your money goes, but most importantly, it also helps identify wastage and unnecessary expenses. The sooner you spot and close leakages in your family kitty, the better your financial position will be over the long-term.

As you formulate the budget, there are a few areas where you can make adjustments and cushion the blow of the cost of living:

Unplanned expenses

It’s important to put something away for a rainy event, even if it’s as little as R100 a month. The best way to remain consistent with your savings is by having a monthly debit order transfer.

Education expenses

Instead of buying school uniforms during the back-to-school period, try to buy these items much earlier, as they’re likely to be a bit pricy during the hype. Lay buying is another option.

Don’t cut off funeral insurance

If you have funeral insurance into which you contribute monthly, don’t get rid of it. Rather cut down on other expenses such as entertainment.