Thuli Nkomo, financial advisor at NFB Private Wealth Management, shares tips on cultivating good money habits

Budgeting. Draw up a budget that reflects your income and expenditure. Ensure that the essentials that need to be paid monthly are first on the list, followed by less crucial payments.

Pay off unhealthy debts. You need to pay off the short-term

debts that have high interest rates, such as clothing accounts and short-term loans. Paying off these debts will free up some cash in your budget. High interest accounts wreak havoc on your finances, so learn this well: if you can’t afford to pay for it in cash, you can’t afford it at all. Don’t take out debt to buy food and to finance your living expenses!

Save for the future. It’s a good idea to cultivate discipline around saving for the future. Planning ahead means being prepared for the proverbial “rainy day”. You should have an emergency savings fund where you have saved at least three full months’ salaries. Saving for retirement is crucial, as you’ll be living off your savings, so it’s quite important that you’re saving to provide for your old age. Part of your future might

also include saving for your kids’ education. This should be done early so you can avoid taking out loans to fund their tertiary education.

Set financial goals. Setting realistic financial goals that you’ like to achieve in the short-, medium- and long term, is a good practice because you get to have a vision on where you’d like to see yourself financially. A short-term goal could be something as simple as sticking to your budget, and results in your paying off all short-term debts in one year. Medium-term goals could be a deposit for a house or a car. Long term goals include savings for retirement or education – yours, or your children’s. Consult a financial planner.

Getting professional help will help you have a healthy relationship with your finances.