ADVERTORIAL BY LIZL BUDHRAM
Trim your budget
to grow your savings W
hile you know you need to save, it may be a difficult concept to relate to while you are caught up in simply making ends meet each month. Saving can be compared to losing weight or getting fit. Although you start out with the best intentions, you tend to fall off the wagon, because the timelines or goals you set for yourself, are not realistic. When it comes to saving, people typically save for three months or six months and then run into problems because they don’t have an emergency savings fund or they don’t have a proper budget in place. This means they give up without establishing a long-term savings habit. Here’s how to get started and stay on track with your savings plan.
is set up for failure. You either end up bingeing on the wrong foods or you give up because it is not sustainable. Similarly, you need to be realistic when you draw up your budget. Instead of cutting out all magazines, include a line item in your budget for just one magazine a month and stick to that. Be flexible so you are not setting yourself up to fail. Be accountable Just as you would use a food diary that makes you think twice before you eat something, being accountable for every cent you spend will give you pause for thought before you make impulsive purchases. There are several ways to do this.
Start with the basics Draw up a budget. This is like planning your meals in advance to avoid compulsive eating. Use your last three months’ bank statements and list your income and expenses. Understand your spending patterns and behaviour. Include every single expense – even the chocolates that go into your trolley at the till point.
The 22seven app can give you that automated assistance. The app allows you to see all your money in one place by linking your bank accounts, credit and store cards, investments, loans and rewards. It generates a budget based on your own, actual spending and you see exactly how much you spend and on what each month. You can also work with a financial adviser to help you stick to your budget.
Be realistic A diet that aims to cut out entire food groups or even all chocolate
Use an Excel spreadsheet on your laptop, or you could just go back to basics with a little notebook and
32 | Public Sector Leaders | July 2021
Lizl Budhram
Head of Advice | Old Mutual Group Contact Website: www.oldmutual.co.za Phone: 0860 60 70 00
