Strive to be fi­nan­cially fit

Sav­ing needs to be a pri­or­ity

Weekend Witness - - Money -

FI­NAN­CIAL fit­ness is the ba­sis of be­ing able to reach our as­pi­ra­tions and goals in to­tal­ity — all of which starts with proper plan­ning.

Leon Daniels, head of fund­ing at Ned­bank, said that in th­ese tur­bu­lent times, the re­al­i­sa­tion that there may be a need for sys­temic change in one’s fi­nan­cial man­age­ment needs to be dealt with im­me­di­ately.

Sav­ing needs to be a pri­or­ity in fi­nan­cial plan­ning, said Daniels. Ide­ally, one should save a min­i­mum of 10% of one’s monthly net in­come.

But no amount is ever too lit­tle on your jour­ney to fi­nan­cial fit­ness.

Add sav­ings to the monthly bud­get list as you do the wa­ter, lights, tele­phone, bond and rent, which means you pay a por­tion into your sav­ings ac­count as part of your monthly ex­penses.

Start with a monthly bud­get and stick to it. Know­ing how much is left at the end of the month lets you know how much you are able to save.

Write down your fi­nan­cial po­si­tion — your ex­pen­di­ture against monthly in­come. Be hon­est and plan debt­man­age­ment ac­tiv­i­ties.

One way to man­age debt is to con­sol­i­date it into a sin­gle low­in­ter­est obli­ga­tion. Do not be tempted to use that credit card, store card or over­draft in­dis­crim­i­nately once debt is con­sol­i­dated.

If you can’t con­sol­i­date debt, make a list of debt obli­ga­tions in in­cre­men­tal or­der.

Con­cen­trate on pay­ing off the most ex­pen­sive debt first — i.e. the debt with the high­est in­ter­est rate. Gen­er­ally, th­ese in­clude credit cards and over­drafts.

Con­cen­trate on one debt at a time.

If your ex­penses ex­ceed your in­come ev­ery month, think about scal­ing down.

Op­tions in­clude rent­ing a home in a cheaper area, buy­ing a cheaper home or cut­ting back on un­nec­es­sary lux­u­ries. Al­ways com­pare prices.

It is im­por­tant to con­tin­u­ally keep an eye on your fi­nances.

The sim­plest ac­tion of all is to make the pen­nies count in the long term through sav­ing.

— Busi­ness Ed­i­tor.

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