2017 has been characterised by uncertain economy conditions that continue to affect the financial situation for many people and businesses.
Esther Ochse, product specialist says, “In some instances, this causes financial gaps which contribute to a culture of people living way beyond their means and getting trapped in a cycle of short-term debt.” She adds, “Financial literacy education from an early age is vital to ensure proper management of debt and boosting savings. On many occasions we make hasty and impulsive buying decisions that don’t benefit our lifestyle. Understanding the difference between needs, wants and responsibilities is key in changing buying behaviour.” Ochse says it’s important to re-evaluate and refresh the way you use money on an on-going basis to help you be more organised and disciplined.
Easy steps to order your finances
- Review: Compare budgets from last year and this year for wasteful and unnecessary expenditures. Base your financial decisions on your needs, wants and responsibilities.
- Reuse and Recycle: Try to be creative and recycle what you have to the maximum instead of throwing it away. Or alternatively, trade in the item for some cash, which you can save for something else in the future.
- Reduce your debt and unnecessary household expenses. Focus on things that matter: your child’s education, that special family holiday, your retirement or even household groceries that we often take for granted.
Being mindful with finances is important. In conclusion, Ochse says, “This is a good starting point, which ensures that you look at your finances holistically and not as just another chore in your daily life. Planning, ongoing research and evaluation on your spending habits will help you financially and in the long-term.”
Source: FNB. Image: Pixabay