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In today’s tough economic climate, it is more important than ever to budget and establish a savings plan. This is because budgeting is the best way for you to take control of your finances, save money and plan for the future.

Few individuals or families know just how they spend their money.  They know that at the end of their pay period – it is all gone.  A budget will change this.  It is the direct and sensible approach to personal money management.

Basically, a budget is a financial plan that itemises an individual’s or a family’s spending and helps accomplish short-term and long-term goals.

Its main purpose is not to get you out of trouble – although it will help.  Better still, it will keep you out of trouble in the first place.

In fact, a budget is really an essential part of everyday life. Without a budget it just is not possible to cope with those unexpected bills and to see at a glance, how you can most easily cut back you’re spending.

The ultimate aim of budgeting is to ensure that you can:

  • Adequately meet all your financial commitments and
  • Have some money left over to save.

Set a savings goal that is within your reach and will not put a strain on your budget.  Even if you begin by saving only a small amount each pay period, this will add up over a year to a respectable amount.

People with young families should aim to build up an emergency fund equal to three months take-home pay in case of retrenchment or emergencies.

Remember:

  • Your savings will help you through those difficult times and emergencies;
  • If you have money saved, you can use it in emergencies instead of credit cards (with their high interest charges);
  • By saving, you will establish a financial track record, which will be important when you apply for a loan for a major purpose (house, land or car);
The advice contained herein does not take into account any persons particular objectives, needs or financial situation. Before making a decision, persons should assess whether the advice is appropriate to their objectives, needs or financial situation. Persons may wish to make this assessment themselves or seek the help of an adviser. No responsibility is taken for persons acting on the information provided.

 

 

 

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  • The hardest part of following a budget has been not spending the leftover cash. It is so handy to have it in another account for a rainy day

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  • Thank you for this article I found it really interesting.

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  • Thank you sharing this article to read.

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  • Budgets are so important for all


    • So true, I never properly budget, since budgeting it has made such a good positive difference.

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  • Thanks for your great post – very informative

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  • thanks for the good advice 🙂

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  • thanks for sharing was a great read

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  • I try to save a bit each week, some great ideas, thanks for sharing.

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  • This article is so interesting, thanks!

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  • Thank’s for sharing this was a very interesting read , I also gave me so good ideas ,

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  • These are some great ideas, I try to save a little each week

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  • A great read. Thanks for sharing

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  • when we get paid i like to keep a little away and then have some left over so if we need to spend we can with touching the other money

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  • Sometimes I look around and those people who seem to have everything are actually deep in debt. Don’t try and keep up with the Jones

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  • i love it. i myself am a saving holic 🙂 iv’e been saving from childhood. once i even saved thousands and it helped us lot when my father had to pay some debt. i didn’t even asked back. do parents ask back, No than why me. i love to save AND use it when its much needed. its a win win.

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  • i love it. i myself am a saving holic 🙂 iv’e been saving from childhood. once i even saved thousands and it helped us lot when my father had to pay some debt. i didn’t even asked back. do parents ask back, No than why me. i love to save AND use it when its much needed. its a win win

    Reply

  • A great read. Savings are essential, but I find it harder to build these days than years ago. Our money doesn’t seem to stretch as far as it used to. Everything is getting more expensive, in fact, way more expensive, but my wage has barely increased, certainly not to the same degree as expenses. My family & I work hard to change spending habits. We now grow as much food as possible from seeds. A great feeling to eat what we grow, n barely costs anything! We’re learning many ways to save money. We didn’t have to worry do much years ago!

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  • needs to be added to your budget money for shopping, only once. Okay we all know that budgeting is a difficult process, and involves many areas, but this one I am finding great, and money saving as well. I have started to use Chux extra thick magic erasers. These I purchased from coles, in cleaning section. They take the greasy crayon marks off walls, mildew off showers, finding marks going from handbags, and best of all coffee and tea stains out of cups, after all who wants a cup already brown. This is saving me buying ajax, and any of the cleaners I used to buy, and seems to outlast them all anyway. Try it for yourself, it sure will help in the cutting down of cleaning items you purchase…

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  • I think you have to have the motivation to stick to the budget. And it is hard when unexpected things happen like getting a flat battery yesterday and having to pay for a new one.

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  • Thanks for the read. Sometimes it’s easier said than done though..

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