South Africans have a habit of turning to credit when times get tough, but we really need to get that overspending under control, and this is how…
South Africa (02 December 2020) – Do you ever have months where you struggle to keep your money under control? When it seems like no matter what you do, you overspend, and then the savings you set aside the month before have been spent to make up for the overspend?
There are many reasons why we overspend. It could be because we aren’t aware of our true spending habits. Maybe we are guesstimating our income, or being over‐committed in terms of debt payments, or spending incorrectly. In the end, our bank account balance dips lower than we expect. Whatever the reason, here are some tips on how you can avoid overspending and keep your money in check.
Switch to a cash‐only diet
When you head out to the mall, take only the amount of cash you anticipate you’ll need and leave the credit cards at home. Unless you know for certain you are going to buy something using the card, and you have a plan to pay it off, there is no need to take your cards with you. By doing this, you avoid the temptation of using the card for a spur‐of‐the‐moment purchase, which is often the fastest way to find yourself in debt.
Normalise alternatives that help you say no to debt
Rejecting debt outright is, of course, easier said than done. This is where rent‐to‐own offers a flexible and convenient alternative. The rental model, popularized locally by Teljoy, offers customers the option of renting on a month‐to‐month basis, eliminating the debt burden of a credit purchase. This option offers far more flexibility compared to buying a product outright. Most significantly, it removes the risk and cost of debt from the equation.
Start using a budget.
Not having a spending plan is one of the main reasons people can’t seem to stop spending money. If you aren’t sure about how much you take home each month and how much your expenses add up to, you’ll continuously fall into the trap of buying all the things you think you can afford, only to get a rude awakening at the end of the month when your bank account isn’t looking too great. This is why implementing ‐ and sticking to‐, a monthly budget can help.
Track your spending
Those small things you buy on a regular basis can really add up by the end of the month. The best way to keep control of your money is to track everything you’re spending it on. Once you’re aware of where your money is going, you’d also be putting yourself in a better position to make smarter spending choices and to identify areas you can cut back on. By following this simple step, you’ll also learn to respect your money more.
We’re going through enough stress as it is. Let’s not allow ourselves to fall into the trap of overspending on unnecessary things in the new year.
Sources: Supplied
Don’t ever miss the Good Things. Download the Good Things Guy App now on Apple or Google.
Have something to add to this story? Please share it in the comments or follow GoodThingsGuy on Facebook & Twitter to keep up to date with good news as it happens or share your good news with us by clicking here.
Click the link below to listen to the Good Things Guy Podcast, with Brent Lindeque – South Africa’s very own Good Things Guy. He’s on a mission to change what the world pays attention to, and he truly believes that there’s good news all around us. In the Good Things Guy podcast, you’ll meet these everyday heroes & hear their incredible stories:
Or watch an episode of Good Things TV below, a show created to offer South Africans balance in a world with what feels like constant bad news. We’re here to remind you that there are still so many good things happening in South Africa & we’ll hopefully leave you feeling a little more proudly South African.
Overspending
by 