To invest you need to save; to save you need to budget

 

In the tough financial times that have been occurring all over the world for the past few years, one of the most important things to do, on both a personal and business level, is to set up and constantly update your financial budget. A budget, however loosely or stringently it is applied, can help you manage your funds in such a way that you are able to find extra funds by planning your bills and outgoing money more carefully.

 

Doing this will allow you to see they amounts you spend on various items right down to the exact cents, which means that, whatever you have left after your bills have been paid will be your savings to do with what you please. It is important, if you want to set up a proper budget, to list every single item you plan on reserving money for. Whether it is a bond on your house, car payment, cellphone bill, petrol expenses for the month, groceries, and even daily lunch fees and/or cigarette purchases.

 

Using exact amounts is not always possible for things like petrol, for example. The easiest way to establish that is then to work out an average and add a few hundred Rand to the amount. That way, if you over budget, it just means that you have extra money to spend on other things, but under budgeting will mean that you may fall short in other areas.

 

The budget you stick to will help tremendously if you are trying to save extra cash for a holiday, or if you are trying to work your way out of a tight situation, as you will usually find that by planning in this way, you will have money to spend that you never thought you had.

 

Doing this by yourself, as opposed to employing a financial advisor or speaking to a bank manager (both of whom will most likely do exactly the same thing, whether for your personal account or for business) you also cut out further costs, and practice will help you understand the financial world just a little bit better.

 

The Learn Café offers training to financial service providers looking to gain accreditation through the regulatory exams set up by the FAIS Act, and are looking for compliance in the act, which will allow them to practice legally in the field. For information on what the examinations entail, or for what to expect out of your financial service provider, visit the Learn Café website or send an e-mail for further enquiries.