\n
\n
![\"\"](\"https:\/\/www.indwe.co.za\/indwe-blog\/wp-content\/uploads\/2017\/10\/donuts.png\")
\n<\/p>\n
Budgeting is a simple enough concept: it\u2019s about knowing what you earn and how much you spend. Yet, it\u2019s something that makes most of us break out in a cold sweat. South Africans are among the world\u2019s worst savers*, generally spending more than what we are earning. Why are we so averse to budgeting? Let\u2019s break it down and look at ways to become a budgeting pro.
\n
\n
\n<\/p>\n
\nThere are a lot of factors at play in why so many families don\u2019t have a budget: \nReady to lose the excuses? Here\u2019s how to stick to your budget: Budgeting is a simple enough concept: it\u2019s about knowing what you earn and how much you spend. Yet, it\u2019s something that makes most of us break out in a cold sweat. South Africans are among the world\u2019s worst savers*, generally spending more than what we are earning. Why are we so averse to budgeting? Let\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":540,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"yoast_head":"\n
\n
\nIt\u2019s boring: Sticking to a budget is pretty much saying no to going out, no to nice things, no to fun. Right? Wrong. A budget is not there to spoil life for you. It\u2019s a practical tool to get to your goals and a way to have a long-term view on your finances.
\n
\nTip<\/strong>: Boring now can be extremely enjoyable later. Keep your goals visible by writing them down or make it come to life \u2013 for example putting the money you save away in a separate account so you can watch it grow. When you reach certain goals, celebrate them by transferring lump sums into an investment account.
\n
\nNot enough time: When you work long hours or treasure time with family, the last thing you feel like is sifting through bills or scrutinising your bank statements. However, if you spend 30 minutes changing phone providers, you can save thousands of rands over a year, which is definitely worth your time.
\n
\nTip<\/strong>: There are lots of free budgeting apps that will automatically record all your spending. Instead of browsing Facebook during idle moments, go over your expenses for the day instead.
\n
\nI-want-it-I-want-it-now: We live in a world of instant gratification and easy access to credit. It\u2019s very tempting to get locked into a smartphone upgrade or store card that is \u2018just\u2019 this much per month. It\u2019s much harder to say \u2018no\u2019 or rather save the money.
\n
\nTip<\/strong>: Purchases have an immediate reward, releasing our happy hormones. Set yourself achievable goals (e.g. no more daily cappuccino\u2019s or try packing lunches for a month) and you might enjoy these accomplishments just as much.
\n
\nIgnorance is bliss: We\u2019re afraid that when we start to budget we\u2019ll get a big shock and realise just how far outside our means we\u2019ve been living. It\u2019s easier to keep our heads in the sand than facing just how in the red we are.
\n
\nTip<\/strong>: While this feeling is understandable, it\u2019s not going to get you anywhere, and falling further into debt will catch up with you. Rather face the facts now and let a professional help you get back in control. It might not be as bad as you think.
\n
\nThe bottom line: People tend to focus on the top number \u2013 their earnings \u2013 rather than the bottom, which is what\u2019s left after expenses are covered. So when they get a raise, they feel they can spend more immediately.
\n
\nTip: Every time you get a raise or unearth extra income, allocate the majority of that to the settling of your debt, your savings or retirement.
\n
\n![\"\"](\"https:\/\/www.indwe.co.za\/indwe-blog\/wp-content\/uploads\/2017\/10\/cookies.png\")
\n<\/p>\nGetting back on track<\/h2>\n
\n
\nDraw up a realistic budget: Be super honest about every single expense and see where you can cut down. Use those savings to settle debt first, only spending money on must-haves.
\n
\nCash is king: Beware of the plastic (store and credit cards) as well as payment apps. All too often, this \u2018invisible money\u2019 tricks you into spending more than you should. Set a budget for the week, withdraw the cash and steer clear of cards as much as possible.
\n
\nShare the load: If you\u2019re in a relationship, book time with your loved one to create a budget together that you both agree on, or make a pact with friends to all stick to your monthly budgets.
\n
\nAdd a \u2018just for fun\u2019 item in your budget: This lets you treat yourself spontaneously each month so you don\u2019t feel too restricted.
\n
\n![\"\"](\"https:\/\/www.indwe.co.za\/indwe-blog\/wp-content\/uploads\/2017\/10\/shoe.png\")
\n
\nReady to conquer budgeting? call the experts on 011 831 8000 or find your closest Indwe BlueStar advisor.
\n
\nIndwe BlueStar is an authorised Financial Services Provider. FSP 2759<\/p>\n","protected":false},"excerpt":{"rendered":"