Money Resolutions to start and keep in 2015
Written by Karabo Masuku
In these times where of a weakened rand value and escalating costs of petrol, electricity and food, really means that our bank balances are looking less and less by the day.
How are we to ever survive?
In an article I read on the money web website, Author Hanna Barry truly sums up some of the points to be noted for the coming year, that I will be adopting as well.
Adopt the habit of Budgeting
It is important to know where your money is going and what you are spending it on, this will assist you in planning for your big goals like purchasing that big house and saving for education. This helps in analyzing what you need versus what you want, this restraint will assist you in managing your debt.
Pay Your Debt Off Now.
The financial planners’ are advising that people should look into considering paying off their debts as quickly as possible. This will be beneficial in the long run, especially whilst the interest rates are still low.
Are you over insured?
Experts say that you must watch out for accumulating life, disability, medical covers. It is said that the healthiest persons are the ones who have the most expensive medical aid. Reflect on the advantages of having this expensive medical aid that you hardly use, rather opt for a hospital plan or the closes network covers with similar benefits of having the high cost cover. This will assist in saving extra money which can be used to service other major expenses in your life.
I like this one the most – The seven day rule.
We should ask ourselves what you are sacrificing when spending on certain activity or item. Analyse what future sustained benefit you will derive versus the instant gratification of purchasing that particular item you saw in the shops, after a week reassess the lost opportunity cost (how many weeks of bread and milk will a new pair of shoes amount to?) then make the final decision.
The aim is to delay instantaneous gratification, and as a result you will make better informed decisions and purchases that will provide a sustained future benefit.
Good luck for the new year and may you make more and save money….