“The association between attitudes, behavior and money” by Kholisiwe Mathokazi
Money is a very personal part of our lives. It is important to learn as much as possible about money these days because “the more you learn is the more you earn”. Even though money talk is not a very frequent topic, everyone is desperate to talk about cash, as it causes so much stress and so many headaches in our lives especially if it is not handled properly.
Learning what to do with your money is the beginning of starting to recognize that making the right financial goals will be like skating on very thin ice. This means that your money, your warts and situation is controlling you when you should be controlling your own money.
But if you understand how money works, you will completely change your life.
If your feelings about money are anything besides happiness and joy you should look into the following:
Budgeting and having a financial plan
We can budget by being knowledgeable about the way we spend money and also having a devoted amount that we are keen on putting away on a monthly basis. They say, “you need to earn more than you spend and never spend more than you earn. Moreover, if you can’t buy it twice then you can’t afford it”.
Tracking your expenditures
What is very important when it comes to tracking your expenditures is having a budget every month and after that compare it to your bank statements to see whether what you budgeted for, you spent for and that is where you will see the differences. The differences will be what you didn’t budget for.
When you compare your bank statements to your budget or you compare your expenditure for the month to your budget to see the amount you had budgeted for and how much you actually ended up spending…noticing differences in your spending will assist you with tracking your expenditures.
Once you are done then you can ask yourself this question: “Did I stick to my budget or did I overspend? If you did overspend then you can come up with ways to tackle these differences. Be aware of the causes of the overspending.
Identify primary (needs) vs secondary (wants) expenses.
Primary expenses (needs) – are essential everyday expenses to cover your daily requirements that you really need for survival. These may including rent, water, electricity, food and transportation.
Secondary expenses (wants) – are goods that you desire but don’t really need and can live without but spend on them either way. Examples are handbags, accessories, take-away food, going out and alcohol.
FYI, heavy drinking does not only damage your wallet but also your liver and brain, now why wouldn’t you refrain from such? Classifying these two categories restricts you from milking your wallet dry for something that won’t give you fruitful results.
Cut down on your expenses
Short- term discipline will ensure long-term financial stability for you and your family.
You can practice this discipline by making a list differentiating between your genuine needs and things you merely want. Stick to it.
For example, avoiding paying others to do things that you can do yourself like gardening and cutting the grass.
Planning for unexpected expenses
Unexpected expenses are unpredicted that is why they usually catch us by surprise. If you stay prepared the element of surprise will never catch up with you. As soon as these unforeseen circumstances arise you will be equipped financially. Having an emergency account is how you stay equipped.
You can achieve this by adding another account on your bank account and name it “emergency account”. After that it will autosave the amount that you want to save. For example, you may want a minimum of R300 in your emergency account.
This R300 will be taken automatically from your salary as soon as it comes into your main account and will be re-directed to your emergency account.
Plan to save money every month.
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for” – Robert Kiyosaki
Remember // financial freedom is within your reach.