Mmegi Online :: Financial wellness
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Last Updated
Thursday 13 December 2018, 12:33 pm.
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Financial wellness

back to basics
It is important to keep coming back to basics with your money.
By Staff Writer Thu 13 Dec 2018, 23:29 pm (GMT +2)
Mmegi Online :: Financial wellness








If you get lost along the way, look at each of these areas of your life, and then commit yourself to the goal.
*Plan your budget - live within your means
*Manage your debts - don't get into more debt
*Be a smart shopper - make your money go further
*Protect your assets - and your loved-ones
*Plan for your future - save and invest.

Why should I plan a budget?
Clarah*: "Yeah its payday, my salary just hit my bank account!" But in Clarah's mind she can already see it diminishing to nothing as she thinks of all the things she has to pay for this month. "I'm really worried that if I forget to budget for anything, I will be in big trouble.Clarah knows her usual bills - the ones she pays every month, but she's got a nagging feeling there are some things she has forgotten. "This month it's my friend Boitumelo's birthday: she always buys me such lovely gifts; I must make sure I have planned for her gift in my budget."

Clarah is worried that, if she forgets something, she won't have enough money to pay for it?" If you work out a budget every month, the easier and more accurate it becomes.You will forget fewer things, and you'll soon find your money goes a lot further.That means fewer money emergencies and more money saved for future purchases.

Why are my debts a concern?
There's a simple answer to this question: Debt makes the "future you" poorer. Debts cost you money and takes money away from your savings. All debts have to be repaid. If you don't pay your debts, you will eventually be black-listed which will stop you getting loans in the future - perhaps important loans like the one you need to buy your own house.Make your debt payments on time - don't be late with a payment. Pay more money into your most expensive loan first, and once that is finished use the extra money to keep paying off your other debts quickly.

Three ways that smart shopping can save you lots of money!
*Plan your shopping list
*Be brand aware
*Always compare prices
Shopping lists are like a mini-budget, the more you plan your shopping list, the better you will be at it.Plan for your monthly shopping, and your weekly fresh items. Allow yourself some treats, but only one or two, be strict with yourself!Brand awareness will help you choose the right products for the right reason. It will force you to choose a product based on your own experience and price,

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not out of 'conditioned' shopping habits learnt from tradition or advertising. Comparing prices will make sure you know your shops and their trends with their pricing.

You will know the best time of the month to go shopping and which shops are best for what you need to buy.Keletso discovered that (with all the specials being offered in the newspaper flyers) she was wasting her money by shopping randomly without comparing prices. She found goods in some stores were cheaper in the second and third weeks of the month, so she started keeping a check on prices and knew where to do her shopping and at which time.

Necessary insurance
Make sure you understand your insurance packages and how they work. You should ask your insurance broker lots of questions - even if you've had the insurance for many years.Firstly, make sure you really need the insurance.Make a list of all the valuable things (assets) in your life. Then ask yourself: "if I lost this, would I be able to recover financially?" You'll then know what's important to you to insure. Mickey was paying into an insurance fund for seven years - a life insurance plan. The problem is that Mickey doesn't have anyone who's dependant on him.The only way this plan pays out is if he dies. And in his case, there's no-one who really needs money when he's dead.Mickey came to realise that he was paying for unnecessary insurance (at this stage of his life).He can stop this insurance - provided he makes sure he re-visits this 'financial protection need' one day - when he gets married and has children.

Who will pay for me when I'm old?
If you stay healthy, in today's modern Botswana the chances are you'll live long past 60 years of age.At that point in your life you probably won't be working as hard as you do now.

Ask yourself: When I am old, do I want to be:
*In debt?
*Dependant on my children?
*Dependant on my extended family?
*Surviving on a small state pension? OR
*Financially Independent

Now is the best time to start saving for your future. Your financial wellness is up to you. Follow these simple life rules, and be comfortable and happy with your money. If I was in your shoes, I would start today!

Author: Lechedzani Pitso - Financial Wellness Expert at S.C.I. Training which runs Financial Wellness Programmes that are BOTA accredited in Botswana. For help and information contact them on 72309719 or training@wellness.co.bw * Names in this article have been changed.

 

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