1. Learn to budget
Working within a budget assist us to remain in control of our spending. Budget serve as a guideline to remain in control of our finances. If you know how much your monthly income is, and are able to write down your expenses in order of importance this will help you to not overspend. And you will also avoid emotional spending. We need to learn and practice to live within our means.
2. Invest and Save
Have a separate investment account for each project you would like to achieve and set a goal. For e.g if your goal is to make renovations for your house or installing new furniture, set a goal and time frame and start saving towards the project. This will help and avoid us in obtaining unnecessary credit that we might not be able to pay in the future. Especially if your goals can be achievable by using cash. Cash is King!
3. Multiple streams of income
There is no best time to start a side hustle than now. If there is anything that the pandemic have taught us in the past 2 years is that one income is not enough. We need to be innovative and see what else we can do to generate extra income outside our 9-5
Our day to day job offered us skills that we can utilize even outside our normal work. You can use your unique talents to create extra income. Work on it, plan and perfect your craft. You start and improve as you work. Practice make perfect. Don’t wait for the perfect time, there is never a perfect time to start. Start where you are with what you have. The rest will follow.
4. Pay your bills on time
Paying on time save us from incurring interests for late payments which will eat up on the same income. You don’t want to pay a 12 months debt for over 24 months just because of the growing penalties. Paying on time also has the benefits, such as lifting up one ‘s credit score. We need a positive credit score for the big purchases such as buying a house, vehicle, etc.
5. Set short and long-term goals.
This point is taking us back to point 2. Simply because saving can be used for our short term goals whereas investing is mostly for long-term. Proper planning and discipline is required in order to achieve this.
Wishing you a very successful year, filled with joy, wealth and prosperity!
Prepared by Dikeledi Seoloane, on behalf of Matsobanemetja Business Consulting (Pty) Ltd.