How to start a budget

Access to credit is relatively easy. Your bank is quick to provide you with a credit card pretty much as soon as you leave school. It’s no wonder so many South Africans get used to buying things they want on credit. That’s often where the debt spiral begins.

If you are struggling with your finances the first thing you need to do is to draw up a budget. Only once you know exactly where your money goes each month can you make changes to your spending behavior. These may be small changes to start but will add up in the long term. The basic principle  of a budget is to make sure you have more money coming in each month than going out.

Taking on debt isn’t always a bad thing. Particularly if you look at purchasing a house or a car. You just need to make sure you keep on top of the monthly repayments.