Regardless of how much you earn having a budget is a must. Whether you want to curb your spending, pay off bills or save for a dream vacation a well thought out budget is your first step toward making your financial goals a reality.
So, what’s the secret to budget success? Knowing how much you spend, knowing what you earn and knowing where you need to cut back.
Calculate your expenses
The first step toward setting a realistic budget is to find out exactly how much you’re spending each month. Comb through your bank statements, receipts and other financial records and record how much you’re spending on average each month including unexpected expenses.
At First Federal Investments we cater to the needs of South Africans marginalised by traditional financial institutions. We use best-in-class technology and responsible micro-finance practices to ensure you get your financial boost fast.
Determine your income
Once you know how much you’re spending look at how much money you have coming in. This includes your regular salary or wages, and other income sources you may receive from a side business, child support, grants, interest, dividends and rental income. Once you’ve compared your income against your expenses you will know how much you need to stay afloat each month and where you need to cut back.
Set financial goals
If you’re earning more money than you spend, congratulations, you have extra cash that you can put towards paying off your debts or to save. If you’re spending more than you earn its time to reassess what you’re doing with your money. To do this track your spending and record every expense throughout the month. Seemingly insignificant items like cooldrinks and snacks add up over time so pay attention to EVERY expense. Once you know what you’re spending on you need to be ruthless in cutting back until your budget is back on track.
At First Federal Investments, we know that life is unpredictable and costs can add up which is why we want to help you bridge the gap with sustainable short term loans. Whether you want to fund a major purchase, pay off an unexpected expense or consolidate your debt, we use best-in-class technology and responsible micro-finance practices to ensure you get your financial boost fast.