Are you tired either about always running out of money or of having to forgo buying certain things at the end of the month? Unless you have a very generous income, this is something that not only most South Africans have to think about, but so too do other people in civilised countries all over the planet.
Money is one of humankind’s greatest creations. Once-upon-a-time it was down to each individual person to provide their own food for themselves and their loved ones. As civilisation developed, first came the division of labour whereby men became hunters and women became home-makers; then there was barter, enabling people to obtain things they needed or desired by swapping other things for them.
Money boosted the development of society
The invention of money took bartering to a whole new level, and today we get paid for various sorts of labour, and we can use that money we earn to buy goods and services. Money enabled specialisation, and this is what has led to the rapid expansion of the human race.
But money is in finite supply for most of us. Unless you plan how best to use that limited resource, you will find out all too quickly that you haven’t got enough left to purchase what you need.
How budgeting can help you to manage your money supply
The planning of expenditure is what is referred to as budgeting, and good budgeting should ensure that you can survive the month and maybe even have a little money left over which you can then set aside for a rainy day.
It’s not just people who don’t have much of a knack for controlling their spending that ought to learn the art of budgeting; even people who are money-savvy can benefit from it too – especially in view of the new tax changes brought in via the last budget.
If you have never created a personal budget before and you don’t know where to start, there are some great apps and software programs around that can help. The Citizen.za website has tried out a few of the best, and you can find out more about them by clicking on this link.
Everyone should create a budget
Budgeting can be as easy or as complex as you like. Businesses need to operate reasonably complex budgets which take into account all of their forecast expenditure, linking it to thinks like their sales books and order forecasts. But from a personal point of view, even the simplest form of budgeting will help you to be more in control of your money.
Budgeting the smart way
Most South Africans now own Smartphones, and the new apps that are available (apps like Money-smart app) can help you to keep a day-to-day check on your expenditure on a real-time basis.
By linking these types of apps straight into your cheque, savings and credit card accounts, you can get live updates each time you log into the app, so you know exactly how much money you have left at all times.
Put yourself in the driving seat
You can create and keep track of categories of expenditure that apply to you as an individual, plan your forward spending, and monitor whether or not you are staying on track. Although it might sound complicated, it is easier to set-up and operate than you might think, and best of all, it will put you in the driving seat with regard to your personal finances.