A budget is a plan for how you are going to spend and save your money. It allows you to plan ahead to make sure that you will have enough money for the things you need and for the things that are important to you. Because budgeting allows you to plan ahead, it also helps you to worry less which can give you financial peace of mind.
Want to start budgeting? Use our free budgeting tool here (XLS and PDF) and follow our simple 9-step process:
Remember: Budgeting is all about putting your needs above your wants so that you can get to the end of each month comfortably. Needs are essential items such as rent and electricity, while wants are non-essential items like new clothes and takeaways.
Communication is key when it comes to money matters, regardless of how difficult it may be. Practise positive behaviour when speaking about money, such as active listening and showing respect.
Family responsibility (or Ubuntu) describes when young people share part of their salary with immediate or extended family members. This is done to make sure that your family is taken care of in addition to taking care of your own financial needs.
Whether you view this as a responsibility or a privilege, it is important to be open with your family about your financial situation and the amount you are able to share each month. This will allow you to take care of your own financial, physical, and mental health and help you avoid getting into debt.
Want to learn more about budgeting?
We have some helpful radio clips about this topic with some golden rules straight from financial advisers. Click here to listen to them
Check out the recording of our budgeting webinar to learn even more about this important financial topic. Click here
