Spending 103
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Spending 103
For a few months Joy tried her best to stick to her budget, but it just was not working out.
Yes she had the odd purchase that was not in the budget, but worse was that her salary didn’t cover all of her expenses. Joy started to cancel some of the subscriptions she had which she was not using, and she also started cooking at home every night.
However she found her grocery bills and odd clothing spend was still hurting her budget.
So she went over to visit Pearl for some more guidance.
Pearl looked over her budget plan and last 2 months bank statements. She could immediately see the issue Joy was having. She said, “The most important thing to stay on top of your spending habits is your mindset. You have to be disciplined, and learn to say no to both yourself and others!
Remember that this is for only a period of time and will be worth it in the end. Print out your “why” list and look at it every day, as it will help you to stay on track.”
Pearl also had some helpful tips that Joy could use to really start making her budget work. Click on each of the items below to uncover the descriptions.
Using an envelope for each budget line item is a great way to stay on budget. By paying cash for items, such as groceries, it is much easier to stay on track and to see how much you are spending. Handing over R1000 in cash feels much different than simply swiping for that amount. Plus you are able to look into your envelope, and at a glance, see how much you still have left to work with for the remainder of the month.
Once a month review your budget. If there are any categories where you are always falling short such as groceries, you may need to increase this amount, and decrease from another less important category. Also include any categories which you may have initially forgotten, to help yourself stay on track going forward.
When it comes to big purchases over a certain rand amount (you can set this amount for yourself), look at it and decide whether this is a want or a need, take a photo of the item and wait at least 24 hours to think about whether you truly need it, and finally if it is something which you feel you need, then add it in as a budget line item in order to save up for it.
Pearl then gave Joy a hug, saying, “You are trying your best, and nobody gets it right the first time. Always remember you are in a much better place than you were 3 months ago!” Pearl also reminded Joy to focus on the savings fund while she is paying back debt. “There will come a day when you have a real emergency and you don’t want to use your credit card for this”, said Pearl.
So try to save up some money for that rainy day when you really need it!
It has now been a full year and Joy is doing really well with her budget. She is covering every expense each month, and continues to pay back her debt.
She did have a small set back when she had to pay for a broken fridge at home, but luckily she had already saved up R3,000.00 in her savings fund for just such an emergency!
Joy is really enjoying being in charge of her money and wants to take it even further. She has got to the point where she has mastered her budget, and now needs to start making more income.
A big side hustle is her plan and she decides to get help from her boyfriend Tshepo, who has his very own side hustle up and running…
Let’s recap all of the amazing lessons we learnt with Joy …
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