Budget- Savings (Part 3)

23:48pm at the MTN Bushfire festival in eSwatitini, waiting patiently for Kwesta to perform. I sit deep in thought as the the loud sound of the bass guitar plays in the background. I take a sip of my favorite drink and suddenly inspiration hits. I smile, without a worry in my heart.

I take another sip from my glass and I smile again, knowing that the cost of this little short left trip has been budgeted and accounted for. Yes, I planned well in advance – bought the ticket and paid for accommodation in March 2018 already (see part 2 of the conversation). I have no pressure or guilt because I have budgeted for this entertainment, so I’ve got things covered.

It’s been said that we ought to pay ourselves first then our creditors second. More worrying is that we ought to save at the minimum 10% of our salaries every month, which a significant number of us do not do! This is a concept I’ve only come to understand and appreciate recently.

Like in part 1 and 2 of my recent blog posts, I’ve advocated for budgeting and shared lessons I can only hope have been beneficial to you. My message today stems from a recent change in behaviour that left me in awe!

Understanding the importance of SAVING; saving for rainy days, saving for specific goals or putting money aside for investing is a principle I’ve struggled with for a while due to the rising need for instant gratification. I’ve often went by without making a conscious effort to increase my monthly savings, however two recent incidents reminded me that saving for a rainy day is actually more important than we think.

It was when my friend’s car suddenly stopped in the middle of the road in peak traffic on Sunday, had to be towed and then left him with a bill of R10, 000 to repair the damage. It wasn’t long after my car also stopped, forcing me to replace the clutch kit to the value of R9 000.00- an expense I didn’t budget for or anticipate.

In such an event, what do you do? How do you finance this unexpected expense?

Most of us rush to the bank to apply for a temporary overdraft or use our credit cards. While these can help, they often come at a cost- initial fees and interest that we ought to pay. Wouldn’t things be a lot easier if we ran to the bank to withdraw funds from our savings accounts instead of acquiring more debt?

Saving is not easy, but with a little bit of effort it can be done. I’ve challenged myself to saving R500 each month towards emergencies and it is not easy. But what keeps me going is to avoid paying interest again in the future for any emergencies.

What is your situation like?

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Budget- Entertainment (Part 2)

Budget- Entertainment (Part 2)

“It’s not how much money you make, but how much money you keep” – Robert

Decisions- Financial or otherwise…

Decisions- Financial or otherwise…


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