A new year can bring about new resolutions and goals. This includes setting up or reviewing your budget. Whether you work for yourself or earn a top notch salary, budgets are important as they allow you to keep track of your salary, curb overspending, and set financial goals.
Putting together a new budget for 2017?
Along with the standard ‘cost of living’ expenses, make sure you include the following:
‘Bad’ debt such as credit card payments can put a strain on your finances, especially when the debt comes with interest. Many people try to avoid thinking about how much debt they have but that’s a mistake. Know what you owe, acknowledge the debt, and start paying it off. Make it part of your budget so that you commit to regular repayments.
2. Savings and investments
Many people struggle to save as they don’t plan to or they try to save at the end of the month, after working their way through all their income. Save a set amount at the start of every month (as documented in your budget) and you’ll soon have a tidy nest egg. All set with savings and other financial basics like disability and life insurance? It might be time to look at investing – speak to a trusted financial adviser about how best to start investing.
3. Entertainment and gifts
You might be surprised at how much money you spend on non-essentials once you start accounting for them in your budget. Not only will this awareness hep you to spend less, it will allow you to have the funds to buy that extra birthday present without falling into further debt.
Just because you’re a working professional and no longer a student, you don’t have to stop learning. This year, allocate a portion of your budget to educating yourself – take up a class, join a club, learn a new skill. Find something that interests you and that broadens your experience.
5. Something fun, just for you
While protecting and growing your wealth is paramount when dealing with your finances, it is a good idea to make some space for something fun or pleasurable, for example, a monthly spa treatment or a year-end holiday. Factoring in this cost can be a motivator for you when the going gets tough or act as a reward for a job well done.
As specialists in wealth management, we understand how hard you’ve worked for your money and we believe in helping you create a sustainable lifestyle, from insurance to investment, from your personal wealth to your business.