We cannot embark on the journey of 2024 without…
A Budget.
While 2024 may present its challenges, taking this practical step towards financial freedom and wealth-building is crucial. Creating a plan for your money not only provides structure but also brings peace of mind.
It’s essential to understand that your budget should be tailored to your:
✅ Income
✅ Goals
✅ Stage of Life
We’ll be adopting the Zero-Based Budgeting method, a recommendation from Dave Ramsey.
Simply put, all the money going out should align with the money coming in. If you earn R 5000 a month, every rand has a designated purpose – from paying bills and saving to settling debts, contributing to charity, and enjoying life.
Contrary to common belief, a budget doesn’t restrict freedom; it grants freedom by guiding your spending decisions.
Here are the four steps to effective budgeting and spending tracking:
Step 1: Write down your total income.
Step 2: List all your expenses, including:
– Giving (Allocating 10% of your income.)
– Savings (Emergency Fund, Retirement, Kid’s University fund and investments)
– The Four Walls (Covering essential bills: food, utilities, shelter, and transportation.)
– Other essentials (Including insurance, debt, childcare, etc.)
– Extras (For the enjoyable aspects: entertainment, fun money, restaurants, etc.)
– Month-specific expenses (Accounting for holidays, celebrations, or semi-annual expenses due this month?)
Step 3: Subtract your expenses from your total income.
Step 4: Start tracking.
– Possibly one of the most underrated steps, tracking where your money goes is just as crucial as creating the budget itself. Ensure that every rand goes where it belongs.
– Neglecting this step often leads to overspending and wasting money on unplanned events or unnecessary items.
We genuinely want you to succeed in budgeting and tracking your money.
For practical examples of how to apply these budgeting steps, we’ve included two links below. Dive in and start your journey to financial empowerment!
Link 1: Quick start budget template – quick-start-budget-form.pdf (ramseysolutions.net)
Link 2: Budget Calculator – Budget Calculator – Ramsey (ramseysolutions.com)