According to the Consumer Credit Market Report released by the NCR in September 2013, in South Africa there are currently 20.21 million credit active consumers of which 9.69 million have impaired credit records and 37.69% of unsecured credit accounts are out of date and in arrears. Debt is becoming a major problem in South Africa, […]
28 November 2012
Drawing up a budget is never going to be the most exciting thing you have done in your life and sometimes it can be a scary prospect to actually sit down and work out how much you earn and how much you spend. This is especially true if you know you waste money and enjoy doing so or you have mounting debts which are spiralling out of control.
No-one has to budget, but if you want to follow in the footsteps of financially successful people then starting to budget from now will benefit you hugely.
People who do not budget are not in control of their finances nor their life aspirations. Dreams and goals need to be paid for and if you plan, they are more likely to actually happen.
The aim of budgeting is to know how much you earn and how much you HAVE to spend and how much you could be saving.
Here are some situations that a budget could reveal:
• How much is paid into your bank account each month by your employer (this could be averaged if it is not a regular salary).
• How those little expenses add up each month (i.e. a coffee on the way to work, or the gym membership you rarely use).
• Transport costs.
• How expensive your home is to maintain.
• Where you spend the most money by using your monthly bank statement (buying new clothes, eating out, bank charges).
• How much you are spending on debt each month and the interest rates you have to service.
• How much spare cash you have at the end of each month.
For further advice on how to draw up a budget please contact DebtBusters on 0869 99 06 06 or have a look at our website www.debtbusters.co.za.