A financial diet may be just what the doctor ordered to remedy your money matters
If you tighten the belt around your purse, you’ll soon see how much thinner your debt gets:
The first step is to establish just how fat your debt really is. If you don’t know, you can’t draw up an efficient plan to get rid of it. Draw up a table with four columns. In the left-hand column, write what you owe money for, in the next column who you owe it to, then how much you owe and lastly what your monthly instalment is.
Now that you know how much you owe, you can also establish where your extra money is disappearing to. You could rather use the money you spend on all those coffee shop cuppas to pay off your debt sooner. Write down what you spend your money on, and then decide whether it’s a waste of money or not.
Try to pay off a little bit more than your minimum monthly instalments so that you can get rid of your debt faster. But don’t fall into debt to settle your debt!
The best way to save money is to stop spending it. Don’t buy stuff just to make you feel better after a bad day or when you’re bored. Spend your money wisely – only buy the things you really need.
If you don’t have a plan, you won’t be able to solve the problem. Draw up a monthly budget and do your utmost to stick to it.
Words: Maretha Botes | Source: ‘Voel-goed Boekie’, Carpe Diem