3 Financial promises to make to yourself
If you’ve got a good handle on your finances, you’ve likely identified areas that are going well and others that need improvement. Based on this assessment, it’s worth making a few promises to yourself to ensure that you’re in a better position the next time you review your finances. While these promises will largely depend on your personal situation and goals, we’ve put together three suggestions you may want to add to your list.
1. I will keep track of my money
You've got to tell your money what to do or it will leave. – Dave Ramsey
If you find that you consistently spend more than you bring in, or you’d like to have a better idea of where your money goes each month, it’s time to set up a budget. Decide what you’d like an average month to look like and then keep a close eye on your expenses to ensure that you stay on track. This simple tool is a great way to start taking control of your finances.
2. I will spend less
Beware of little expenses. A small leak will sink a great ship. – Benjamin Franklin
One of the key factors in financial health is living within your means – and the fewer unnecessary expenses you have, the more money you’ll be able to put into savings. Once you have your budget in place and you’re tracking your expenditure, see whether there are any areas where you can cut back or any expenses you can cut out altogether. Which brings us to our next point…
3. I will save more
“Do not save what is left after spending; instead spend what is left after saving.” ― Warren Buffett
Are you adding to your savings on a regular basis? If not, it’s time to make this a financial priority, even if you just start with a small amount each month. Set yourself a savings goal, whether that’s growing your retirement nest egg or building up an emergency fund, and keep adding to it each month. The sooner you make saving a habit, the better for your financial wellbeing in the long run.
Frank Financial Services is a juristic representative of the Standard Bank of South Africa an authorised financial services provider (FSP11287). Products are underwritten by Liberty Group Limited.
Photo by Tirachard Kumtanom from Pexels