Best you manage your money well, because this Wednesday (21 February 2024) is red-letter day for South Africans.
It is the day of the National Treasury’s budget speech, and it’s when we’ll hear all its cockamamie plans to empty our wallets afresh.
Manage your money like a boss
Nevertheless, Business Tech has highlighted seven clever ways to manage your money in South Africa in 2024, to beat the charlatans.
1. Look after yourself first
The best tactic to manage your money like a boss is to pay yourself first – like you are the boss. What this really means is you must set aside a portion of your income for savings before you spend it on anything else. Economists say 10% of your earnings each month is what you should be shooting for. Good luck!
2. Watch your spending
A bit like calories consumed versus calories burned, if you find you don’t have a lot of money left at month-end, and earning more is not an option, just spend less. Sounds like an easy solution to mange your money, but you’ve got to stay on top of it. Keep slips, use a spreadsheet or app and keep track of your bills throughout the month. Knowledge is power.
3. Review regular expenses
Take a look at your medical aid, home and car insurance, and what your bank/financial advisor charges you annually. There are often hidden costs lurking in your accounts that go completely undetected. So, a great way to manage your money is to find them, compare what else is in the market and renegotiate every so often. Trust us, they don’t want to lose your business in this economy.
4. Phone and data costs
If you’re anything like me, you’re still on the same phone package you had at varsity. Monitor how much money you spend on calls versus data. And if you have a good Wi-Fi set-up at home that you work from anyway, why pay extra for a lavish phone contract?
5. Vehicle expenses
Experts say you can add roughly 20% onto the price tag of a new car to get the real idea of what it will cost you. Car insurance, parts, services, fuel, wear and tear, they all add up. So, if your car is paid off. Congrats, keep it that way. You don’t need to put yourself into debt again to buy a new one just to impress your friends.
6. Avoid debt at all costs
Debt is the biggest enemy in your battle to manage your money like a boss. It can drain your income, damage your credit score, and seriously limit your choices in life. To truly master your finances, you must stay out of debt. And the debt you do have must be paid off as soon as possible by prioritising the most pressing amounts first.
7. Set aside a rainy-day fund
This is one of the best pieces of advice if you hope to manage your money like a boss. Aim to set aside three months of living expenses, for example. This process is a great way to review your monthly finances from top to bottom. Then, set up a separate savings account that is easy to access but hard to touch. Save small amounts every month and any nice-to-haves that come your way unexpectedly. Keep saving till you reach your goal amount.
