BASIC FINANCIAL LITERACY

The hard lessons I learnt about the importance of budgeting

EMPOWERMENT ZONE WITH MIRANDA LUSIBA

OVER the years, I have learnt the importance of budgeting the hard way. On months when I did not have a clear budget before month-end, I made the biggest blunders with money. On months when I was disciplined and not just did a budget but also followed it to the tee – I managed to sort of fulfil the 50/30/20 financial rule. The problem is that I was not consistent in my monthly approach.
When I followed a good budget, I was able to use 50% of my salary on my monthly fixed expenses such as rent, debit orders, food and petrol to name a few. I then used 30% of it for stuff that I wanted for the house or other and 20% to pay for some debts, but unfortunately did not save any portion consistently. In hindsight, had I followed a tight budget each month, I would not be sitting with unnecessary debt, spent most of my money on non-essentials like excessive shopping for things I really did not need at times and to top it off – I did not save. When on occasion I did save – I would end up getting tempted to use that money again so it became a vicious circle.
The principle of budgeting is quite simple; and I am not going to give you some complicated formula on how to figure it out instead here are some quotes that explain budgeting in simple terms:
. Budgeting Tip from Financial Rescue I Debt Settlement – Prioritise the things that are the most important to you and cut back on the things that matter the least.
▪ According to Dave Ramsey – A budget is telling your money where to go instead of wondering where it went.
▪ Beyond a Budget says – Budgeting is the first step toward financial freedom.
▪ Below is also a simple diagram from Clevergirlfinance.com which outlines Six (6) Tips to Master your Budget.
So, in summary – please make sure that you do not repeat the mistakes that I made with money. As mentioned before, I will not claim to be an expert in financialmanagement topic however, I have chosen this topic because of the basic knowledge that I gained while I was working at Absa. What I am doing is merely sharing my own experiences and mistakes that I made with money over the years – with the hope that you can all learn from my mistakes and try to avoid them.

Miranda Lusiba is the Founding Director of Strangé Consulting – a boutique PR Agency specialising in Communications, Freelance Writing, Media Relations, Reputation Management and Media Training. #selfempowerment

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