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The main objective of keeping to a budget is so that you can finally take control of your finances and not allow them to deteriorate for any reason at any time. Keeping a firm grip on your money and how you spend it is easily achieved by good old fashioned record keeping. The most sophisticated budget plans though are not worth anything unless you actively live by them and this has to become a lifelong habit.
There are many benefits to holding tight to a budgeting system the least of which is learning to spot patterns in your spending which are either good or bad for your financial security. This helps you to develop better habits over time and in this manner, your budget serves as an ongoing study of your financial situation.
Budgeting teaches you how to cut down on unnecessary expenses. Especially when looking at the current atmosphere of economic uncertainty now is the time to finally learn the lesson about controlling the urge for immediate gratification. In South Africa, the vast majority of people do harm to their own finances by forcing the issue to own things they cannot afford.
In order to enjoy short term material benefits, they are willing to put themselves in debt. A simple change of attitude can make a huge difference to your financial situation so think carefully before digging a hole in your finances.
Credit cards are often misused for short-lived luxuries and before you know it you start to feel the strain on your salary as you have yet another debt weighing you down. By carefully allocating every single expense you are likely to encounter on your budget you can effectively reduce your spending to only that which is necessary. At the same time be sure to record every time you engage in unplanned spending. It will also help you to control your desires so you can change your habit from impulse buying to regular saving.
Every time you feel like buying something you don’t need you will remember your budget and realise you would prefer to look after rather than ruin your financial health.
As it is we never save enough money on a regular basis, but budgeting will also reveal to you that you can reduce your spending even further with a little effort. This, in turn, will see you freeing up bigger portions of your earnings after important expenses. The increased value of extra money can then be put to the exclusive use of saving. In addition to saving for retirement, you can put in place a few separate saving plans. So you can afford to spoil yourself by having a fund for all those things you wish to buy and enjoy.
Another useful pocket of savings includes an emergency fund you can control yourself by putting fixed amounts away each month. This really helps when you are faced with unforeseen difficulties which can and do occur in real life.
If you are unsure where to start with your budget plan Wonga South Africa has some useful tips to help you get the ball rolling as well as a convenient Excel template which you can start using immediately.
The number one cause of stress is never having enough money. By implementing and sticking to a budget you are affording yourself complete control over your finances and this will help you to make progressive changes to your financial situation.
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