Financial prioritiesĬonsider what is most important to you when it comes to financial priorities and make sure that your budget reflects those priorities. Break these goals up into bite-sized goals so that it isn’t too daunting. It’s important to have a concrete idea of how much you want to save, and how you want to use the money so that you can budget accordingly. Savings goalsĬonsider your short-term and long-term financial goals and set specific, measurable goals for saving money each month. Be sure to include all of your regular expenses, as well as any irregular expenses that you know are coming up. Your variable expenses include things like groceries and entertainment, they are items that may change from month to moth and most likely are items you will most likely be able to cut out. Fixed expenses (much like the name are fixed items that cannot be removed or changed) are items like your rent or home loan payments. Make a comprehensive list of all your expenses, both fixed and variable. It is important to have an accurate picture of your income to set a realistic budget and be able to plan for the future. Your income can include anything from your salary, bonuses, gained interest on investments or even money you earn from your side hustle. You should have a clear understanding of how much money you bring in and earn on a regular basis. When drawing up a plan, there are five key elements of your budget: 1. What are five things to consider when drawing up a budget? It also helps you prioritise your spending and make sure that you are allocating your money towards the things that are most important to you. A budget allows you to track your income and expenses and make sure that you are saving enough money and not spending more than you earn. So what is it exactly, and how can South Africans budget better? Budgeting is the process of creating a financial plan to manage your money and expenses. South African youth can find budgeting quite hard, especially if they haven’t grown up in a household where this is the norm. We’ve rounded up the top 5 budgeting apps available in South Africa right now, but before we do that let’s have a look at some financial jargon and a couple of budgeting and savings tips to follow. Budgeting for South Africans is not something that comes very easily, especially with the rise in living costs coupled with a lack of financial education. Whether you got a bit carried away with spending over the holidays or you just want to learn how to save more money – either way, we are pretty sure you’ll be looking for the best ways to budget and track your expenses.
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