Winning With Your Finances in 2021!

I would like to take this opportunity to wish you and your family a blessed 2021! May this year bring you renewed strength and prosperity.

2020 was an extremely tough year for many South Africans, the COVID-19 Pandemic pushed our already struggling economy into a recession and many South Africans faced severe hardships. To start this year I want to offer you three simple tips to win with your finances in 2021. These steps are simple, but they are not easy. #1 – Get on a budget “A budget is telling your money where to go instead of wondering where it went.” John Maxwell Write down your monthly budget, it’s the first step toward taking control of your finances. There are many online tools and software that’s available to assist you with this, however, once doesn’t need a great deal of skill to write down your income on one column and then your expenses on the other. If you are unhappy with some of the expenses, set targets to have this reduced. The key to winning with your budget is sticking to it. Don’t just write the budget but actually stick to it and you will be surprised at what a massive difference this makes to your finances. #2 – Save R10 000 First Step Emergency Fund. “Do not save what is left after spending but spend what is left after saving.” Warren Buffett

Did you know that during the 2008 global financial crisis, 60% of the homes that were repossessed during this time by a large bank in South Africa would have not been repossessed had the families had R1000 extra a month?

It sounds a bit far-fetched but the truth of the matter is that most South Africans are living from paycheque to paycheque. A few days after payday their salary is already spent, and they are waiting for the next payday. Saving your first R10 000 will give you the confidence to take control of your finances even further. Once you have done this stretch to have a full month’s expenses, once achieved set a goal to have a minimum of three months expenses saved and six months expenses if you are a business owner or commission earner. #3 – Stop Using Debt “A man in debt is so far a slave.” Ralph Waldo Emerson. Keep paying your debt and stop using funds from the accessible money in the facilities. The banking institutes love it when clients pay their minimum due payments and then access credit card facilities and or revolving credit facilities. It keeps you indebted and keeps their profits rising. Break the cycle, keep paying the debt and make a commitment to not use funds from those facilities. Please consider the above tips, if 2021 is going to be different financially, it's going to take a firm decision on your end

to follow through on some tough decisions. I know you can do it! Wishing you the very best! Kind Regards, Roniel Chetty Independent Financial Advisor Adv Cert Financial Planning.

The views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author’s employer, organization, committee or other group or individual. The blog does not constitute as financial advise in terms of the FAIS act. Chetstone Financial Consultants recommends that you contact a skilled, independent financial adviser for advice regarding financial planning.