It's payday for the One Rand Family

By admin
10 July 2015

The One Rand Family has received their joint household income in R1 coins. It’s now time for their budgeting battle to start. They’ve weighed up their expenses and sorted their piles of R1 coins into containers.

"I think this handful of coins could pay for my nails. Maybe…” Londiwe weighs up how far her cash will go with her monthly rituals.

A photo posted by One Rand Family (@onerandfamily) on

It’s almost time to start paying the bills to see where their money disappears to – and how much of it remains.

There are a few important areas you should pay attention to, including:

• Your house

• Your car

• Your savings

Sanlam-YOU-wilmer

We take a look at how the One Rand Family’s spending compares to the national average** for people earning a similar income, as well as with the general rule of thumb.

Karin shares these important financial tips:

1. Call in the experts

A meeting with a financial adviser is the first step to financial independence. A qualified financial adviser will take a holistic look at your financial situation and suggest a plan to help you reach your goals.

2. Prioritise your financial needs

Without a sense of priorities you’ll have limited success with your budget. Decide what is critical and develop a realistic spending and savings plan. This can help you to prioritise short-, medium- and long-term financial goals.

3. Clear and avoid unnecessary debt

Financially stretched or not, the last thing you need is more debt. Anything bought on credit ends up costing you a lot more than the original price.

4. Plan for your old age

You won’t be able to generate an income forever, so make sure your financial plan makes full provision for your retirement.

5. THE S-WORD: Save!

If you want to achieve your financial goals and live your dreams you simply have to start saving.

Set up a savings account debit order for the first of every month. That way you won’t miss the money as it will feel as if you never had it to begin with.

Catch the One Rand Family’s story in four weekly episodes on e.tv this month (Monday to Thursday at 5.25 pm) and in webisodes every Monday. You can join their adventure on www.onerandfamily.co.za, where experts offer insights to help you manage your money.

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