09
Nov
Articles, Money-Wise

Whip your money into shape

Posted on by Mumbox | 67 comments

With everything that has happened in the world over the past eighteen months, many of us have had to adapt to a new normal. One thing is for sure, though – in these uncertain times, being financially fit has never been more valuable.

To have sufficient money when we need it and to live within our means knowing that all our financial commitments are taken care of – both for today and for tomorrow.

Getting to this point may seem a bit daunting, but it’s within everyone’s reach. To get started, why not try this fun quiz to gauge your current level of financial fitness.

Take the Quiz

Then get started. You don’t have to run a marathon with your money – start with small walks around the block, and as you build up muscle, you can start stretching yourself:

1. Be committed to making your money work for you and plan accordingly. Nothing in life is ever achieved by chance – we have to make a mental commitment and then follow through with action.

2. Identify your needs of today and those of tomorrow so that you can manage your money accordingly. You need to be able to live today (without relying on debt) as well as put money aside for the future. Draw up a financial plan to make sure that all your bases are covered.

3. Build your brainpower. There is so much information available on the internet and in books. Be hungry for information and learn as much as you can about money so that you make the right decisions. If you feel intimidated by the financial world or unsure as to how to tackle your finances on your own, get professional help. There are many people to draw from, including debt counsellors, financial planners and accountants.

4. Use technology. Staying financially fit is in the palm of your hands. There are many apps that can help you to plan your budget, and manage your spending (such as goodbudget or 22seven), and even invest. Many banking apps also have budgeting facilities – find out what your bank has available.

5. Set realistic goals and measure your progress. Let’s say your immediate goal is to reduce your debt. Select one account, commit to paying it off without incurring further debt on this account, and cut up the card. Don’t rush and try to achieve too many goals at once – this may be unrealistic and you may fail, leaving you disillusioned.

6. No blurred lines. Keeping your financial goals separate will ensure that you remain motivated as you will be able to track your progress towards each one. Remember, when it comes to investing, you will have short-term, medium term and long term goals, Be clear in your own head what the purpose of these goals are. For short term goals, some banks offer savings “pockets” which you can use to compartmentalise your goals.

7. Make your savings automatic. Place your needs at the top of your budget for long term goals. For short-term savings (perhaps to build up an emergency fund), look at some of the automated savings options out there that allow you to save while you spend. This includes FNB’s “Bank your change”, Liberty’s “Stash”, Capitec’s “Live Life Better” savings account and Old Mutual’s Money account.

8. Make sure that your income is protected against illness, disability or retrenchment so that your lifestyle could be maintained if something happened to you. Also, ensure that your family’s needs would be taken care of if you passed away. Having a valid will in place is also crucial. There are some websites such as mywillonline.co.za and quick will.co.za where you can draft your will quick and easily.

Remember, Rome wasn’t built in a day. All big things start with small steps but the important thing is to get started. Give yourself time, dedicate yourself to the end goals, and keep moving till you are financially fit!

This article was written by Sylvia Walker, financial planner, speaker and author of smartwoman. www.sylviawalker.co.za

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67 thoughts on “Whip your money into shape”

  1. Popi M. says:

    These tips are insightful I have been struggling with how to make a budget that work for me and also have my savings grow. I’m going to implement what I have read here. Thank you mumbox☺️😊😊

    • Alison S. says:

      Helpful tips and good advice on how to use and to save your money. Whether it’s for something small or long term but somewhere we need to start..
      And that’s called saving putting something away every month small or big..And staying commited to your saving goals
      #mumbox ❤️

  8. Rukaya D. says:

    Wow thank you so much mumbox it’s really insightful and the tips are really in depth. Thank you for the encouragement I will implement this to start saving for my kids future and to make budgeting so much easier.