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Four steps to a balanced budget

By admin
28 July 2014

Wilfred Moyo, Investment and Economic Strategist at Metropolitan, offers four simple steps to create a balanced budget

1.      Set goals: Budgeting focuses mainly on short term goals, however, short term goals build towards medium and long term goals as well.

2.      Determine the balance of your income and expenses: What is your monthly income? Then work out your essential expenses such as rent/bond, transport costs, groceries, school fees and so on. Decide on the amount you can afford to save each month and then consider it one of these non-negotiable expenses.

3.      Trim some more: Budget for more but aim for less. For example, maybe you have planned that you will need R2000 a month for groceries. Keep aside R2500, and then aim to spend R1800.

4.      stick to it: A budget is only helpful if you follow it. Like most things in life, this takes a little practise and a lot of self-discipline.