How to guarantee your Rands make sense

Budgeting tips

January has rolled around, and you have received your first income of 2019. You are relieved and anxious at the same time. Relieved that you have more than R10 in your bank account but anxious because your money needs to stretch to cover all your expenses.

We have taken the worry out of Januworry. Here are a few tried and tested tips that will help you draw up a personal and business budget.

A personal budget will help you track your spending in your business as well. You will become more aware of how you are spending those hard-earned rands and more reluctant to squander it on unnecessary items. It all adds up. Don’t forget to have a look at our six business budgeting tips below.

Here are our six personal budgeting tips:

  1. Make a realistic budget and stick to it: Don’t wing it. Spend a few minutes drawing up a personal budget – it will save you money later. Trust us!
  2. Goals: These will be short-term, medium-term and long-term – saving for a holiday, a deposit for your home or car, your children’s education and your retirement.
  3. Make the debt disappear: It can be discouraging when you have a mountain of debt to pay off. Pay a manageable amount to all your creditors. When the smallest amount has been paid off, add this amount to the installment of the next creditor. Paying off your debt will also improve your credit score.
  4. Rainy day fund: Save for a minimum of three months’ salary, but six months’ salary will give you a better cushion if you are retrenched or cannot work for any reason.
  5. Control spending on food: Plan your meals for the week and make a shopping list before you go shopping. Never go shopping when you are hungry – you will end up spending more.
  6. Monitor your progress: Assess your spending habits and adjust to suit your lifestyle.

#FunFact: Shop those specials!

Setting budgets for your financial year is one of the major tools of measurement for a small business owner. The advantage of setting clear budgets impacts on the accountability of all the company’s divisions, says Joff Wickins, a Fetola mentor.

Here are six budgeting tips for small businesses:

  1. Avoid unnecessary overheads: Work from home if you can and save on rent and other utilities. If you need to meet a prospective, lucrative client, find a company that rents out office space for a daily or hourly rate. These spaces are also conducive to networking.
  2. Have a green office: Cut down on electricity bills by using energy efficient light bulbs, switching to a paperless office and using cloud networks.
  3. Your time is valuable: Work out how much it would cost you to do a certain task and pay yourself appropriately.
  4. Get your employees involved: Ask your employees for ways to improve the budget. It affects them too
  5. Stay on top: Allocate time to track your competitors and raise awareness about your brand
  6. Outsource: Work out how much it would cost you to do the work and find someone who will do it for less. You might just be supporting another small business in the process.

A budget is a powerful tool to take control of your finances. There several free online tools and apps that will help you create a budget and track your spending. Get started today and make the right financial choices for 2019.