The bend after the spend

Many of us have the tendency to spend money frivolously over the holiday period, not to mention running up insane credit card debt on things we just can’t afford, as well as buying Christmas gifts that weren’t budgeted for. It is easy to get into debt, so money needs to be managed properly, I know too well as I got caught in this trap myself. A simple trip to the grocery store can set you back for the rest of the month. Spending money unnecessarily is a bad habit that can be detrimental to our long term financial goals.

We are living in tough financial times and sometimes it seems that getting into debt is the only way to cope. Remember that one day you will need to get out of this debt, so you will need to stop creating more debt before it’s too late.. Even if you need to make sacrifices and stop living the over-elaborate lifestyle. It’s time to stop living beyond your means.

Quote: “Money is something you have to make in case you don’t die. “–Max Asnas.

Simple tips to assist you in becoming debt free (note to self) 

Budgeting

• Make a budget with a list of what you need for the month and try sticking to it.
• A budget gives you a means to an end, if it’s not budgeted for, you can’t have it - that simple.

Keep it Real

• Stop making debt-tell yourself that if you don’t have the cash, it means you can’t afford it.
• Differentiate your needs from your wants. 
• Make sure that your bills are paid first before doing any shopping.
• See what luxuries you can cut back on so that you can pay extra toward your debt to try and recover quicker (this can also lower what you pay in interest).

Write it down

• Seeing is believing; list all your debt onto a spreadsheet and add them up.
• Have a look at your income and your expenses and see how much you pay on debt repayments, this could come as a shock to you, it shocked me, it was a real eye opener.
• Sort your debts from the smallest to the biggest - Prioritise your bills. If you cannot pay many of them, that's no excuse not to pay any of them. You need to determine which to pay first, how much to pay, and what to do about the others.
• Tackle one debt at a time; start paying your short term debts first such as clothing accounts and credit cards.

Avoid spend by staying home

• If you stay home and avoid shopping malls and eating out, you’d be amazed at how much less you spend in a month.
• Make being at home fun… braai, hire movies, read a good book, laugh with friends-it’s virtually free!

Avoid temptation

• Ban yourself from your favourite store or online shopping site.
• Pay accounts online to avoid having to go in store, only to find yourself buying more.
• If you need to go into a retail store to pay your account, get a friend or relative to do it for you.

     Save

• Put money aside every month even if it is as little as R50 a month.
• Open up a savings account for those unforeseen circumstances, such as your car needing a service, or paying the plumber for your blocked drain etc.
• However remember that there is no point in saving cash if you have debt, so pay that up first before you even think of starting to save. 

Remember a saver grows rich by seeming poor. A spender grows poor by seeming rich.
My hubby gave me this advise, if only I had listened!

For professional financial advise please follow this link:

http://www.oprah.com/contributor/suze-orman

Special thanks to Terri Smith my awesome editor. 

20 do’s and 11 don’ts for 2011

With the New Year, comes a fresh start. 

At the start of every year we make New Year resolutions... to make more money; eat healthier; make the time to exercise etc. People usually make resolutions and then end up breaking them.  Nevertheless setting ourselves goals is important, it provides us with direction and a purpose, it also gives us the motivation to achieve. And while we should have the desire to achieve, we should also be okay if we fail to achieve, we must not fear failure.

Chinese Proverb: “Failure is not falling down; failure is not getting back up.”

I’ve put together my list of do’s and don’ts for 2011, a list I think is important for a woman to accomplish and aspire to, a few of which are my goals for 2011.

 Keep your eye on the goal!

Do’s

1. Pray.
2. Do something each day that makes you happy.
3. Surround yourself with positive, influential  people, who have your best interest at heart, they will help bring out the best in you and assist you in achieving your goals.
4. Try something new, for example: public speaking or skiing, this will force you out of your comfort zone and you never know, you might discover a hidden talent.
5. Learn to speed read. Sometimes you just need to know the basics, a great book to read that will teach you how to master this skill is 'Speed Reading by Tony Buzan.'
6. Learn to keep time, be on time.
7. Forgive those who have wronged you. Let go of grudges and anger.
8. Balance stress, instead of being consumed by it.
9. Evolve your look, also have professional photographs taken of yourself, this will boost your self esteem and when you are old one day, you can look back on how hot and fab you were in your youth.
10. Let go of self-doubt and self-pity.
11. Take care of your body, as it will take care of you. Drink water every day, exercise, take vitamin supplements and eat a healthy diet.
12. Wear sun block, you don't want to end up getting skin cancer.
13. Take time out of your busy schedule of work, children chores etc. For a little “me time” during that time, do the things that make you unwind and that brings you joy.
14. Learn to change a light bulb, change a plug and change a tyre, there will come a day, where you will not have anyone to rely on to do it for you.
15. Manage your finances. Pay your bills and put money aside each month so that when you see those really expensive boots you want or that timeless winter coat that just went on sale, you will have the funds available to splurge! This will save you from making credit purchases so that you don’t get yourself into debt... ooh it’s SO worth it.
16. Get your driver’s license if you don’t already have it. This will make you independent and it has so many advantages.
17. Travel, leave the borders of SA.
18. Listen and you will learn from people, the amount you can learn from them can be astronomical.
19. Remember people’s names.
20. Delve into your own personal psychology, your experiences  have shaped you into who you are today, by reflecting on your life, you will be able to take the lessons learnt from the mistakes you made and then see your potential, this will help you become better and enable you to think BIG.

A quote by Sir Richard Branson “If you challenge yourself, you will grow. Your life will change, your outlook will be positive. It’s not always easy to reach your goals, but that’s no reason to stop. Never say die. Say to yourself ‘I can do it’ I will keep trying until I win.”

Don’ts

1. Don’t procrastinate – be a go getter instead.
2. Don’t neglect the people who love and care for you.
3. Don’t make credit purchases, your aim is to be debt free.
4. Don’t be disorganised.
5. Don’t disrespect people.
6. Don’t over commit your time, energy and brain power.
7. Don’t say 'yes', when you mean 'no'.
8. Don’t rely on others to make you happy, create your own happiness.
9. Don’t hide from your true feelings, instead  listen to your intuition.
10. Don’t compare yourself to others looking for validation.
11. Don’t stress over things that you cannot control or that you cannot change.

So now that we have reflected on the changes we need to make in our lives, it’s time to follow through on those changes.

Steps to take:

• Set goals
• Be decisive 
• Take action

Now GO and conquer 2011, it’s your time to shine.