Your Financial Wellness
Six Surprisingly Simple Do’s and Don’ts
Looking for a simple way to improve your financial situation? These six Do’s and Don’ts will help you boost your financial health quickly and easily.
1. Do spend less than you earn
The surprisingly simple way to have money is to spend less than what you earn. When you are spending less than you earn, you have money left in your account each month, you can save, and you can stay out of debt. Keep your expenses to the bare minimum by budgeting carefully and then stick to your budget.
2. Do keep track of every Rand
Financially successful people know exactly what they spend and why. At the end of the month, go through your bank and credit card statements and identify each purchase. Was it sensible? Was it value for money? Did it add real value to your life? Always look for maximum value out of every Rand spent.
3. Do manage your risk
An unexpected event can derail even the best financial plans, so it is responsible to insure risks to your earning ability, like death, disability, retrenchment, illness, accidents or even maternity. Get the right insurance cover at fair value and regularly review your cover and your premium. In addition, start a big healthy emergency fund and look after your health.
4. Don’t fund bad habits
Bad daily habits are usually also unnecessary expenses. Some are smaller, recurring expenses, like smoking, buying lunch or coffee, or buying pricey convenience foods or name brands. Others are overinflated, like an electricity account that could be reduced, or unnecessary, like magazine or TV subscriptions. Cutting the funding to these bad habits will boost your finances.
5. Don’t believe everything you hear
Dedicate some time to educate yourself in financial matters. It is as simple as attending a workshop, watching videos or taking a course online, or reading a book. Never make financial decisions based on advice from a single source. Do research and consult other sources, like personal finance books, independent personal finance sites and independent financial advisers.
7. Don’t lose sight of your financial goals
Keep in mind your long-term financial goals, such as saving for the kids’ education or a comfortable retirement, especially when these goals require short-term sacrifices. Whenever you’re about to buy something not budgeted for, pause and think about your financial goals. Do you really need what you’re about to buy? Could you get better value? Could it wait?
Financially successful people focus on what they can change to improve their financial situation. These six Do’s and Don’ts are simple changes you can make quickly and easily to boost your financial wellness today!