With many economic variables shaping our world, it has now become vital more than ever before to maintain a strong sense of what we need and how much money will be needed to cover those needs. It is never too late to make some financial changes that will help improve your quality of life.

Here are five tips that can help you get back on track with your finances

1.) Track your spending habits

The future is uncertain, therefore it is essential to know how much you can spend without running into debt. Tracking your spending is the best way to control your finances, this will enable you to see where there is room for cutbacks to avoid going over budget.

 

2.) Save more than what you spend

It is easy to spend more than what you earn. In order to save, it is critical to track your spending patterns and spending habits, thus cutting out any unnecessary items and allowing you to save, even if it is a small amount each month.

 

3.) Set goals and priorities

It is imperative to set financial goals and priorities. Ensure you are prioritizing what is most pressing in your life, rather than spreading yourself too thin, thus leaving you with ‘too much month at the end of the money’. Prioritise setting money aside for retirement and be specific about your saving goals each month.

 

4.) Strengthen your emergency funds

A financial disaster can befall anytime, it is therefore not wise to wait until you have a financial disaster on your hands before strengthening the funds that are meant to protect you. The best way is with an emergency fund, which should be at least six months’ worth of expenses. This will assist you in case something goes wrong and money needs replacing quickly or if there’s major life-changing events, such as a divorce, surgeries, and more.

 

5.) Become debt free

For most people, the number one priority in life is to become debt free. It’s not just about being able to afford monthly payments; it also means that you will never have any outstanding balances. One can have a debt burden without even realising it, because debt is addictive.

Becoming debt free and maintaining being without debt should be a goal.

 

Bonus tip

If you need assistance with budgeting or debt, contact your EAP provider

Financial wellness programs are a great way to help employees with their personal finances. They offer support in the form of budgeting, goal-setting and money management skills that can be invaluable when you’re struggling on your own.

All Woolworths employees have access to budgeting advice included in their EAP.

Please call 0800014818 to talk to a debt counsellor.