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Johannesburg - Sound financial health begins with understanding your lifestyle and by knowing where you spend your money, according to African Bank.
Understanding these things will help you make sound financial choices like living within your means, saving for rainy days, managing your credit and repaying monthly debt instalments.
Forming sound financial habits requires the desire to take control of your money and a commitment to financial actions of when and how you use your money.
READ: Load-shedding your finances
African Bank offers five key actions to think about whenever you are thinking about spending money that will help you to develop habits to stay financially fit:
Be aware of your money
Understand your finances. Know what you earn and what your living expenses are. This will help you to manage and control your money. That will lead to a good credit profile, which will assist you to obtain credit should you need it.
Plan your money
This will help you to plan for the future, have control over what and where you spend your money and as a result be able to meet your goals. Understand what you really need and determine your needs in a short and long term goal plan.
Safety net
Try and create a safety net through investing spare cash savings and investments. Having extra money set aside will provide you with the security when an unexpected event in life happens.
Spare cash may also create a nice spring board to help you reach your short and long term goals.
Use credit wisely
Credit is not free, so use it responsibly and make sure you can afford to repay your monthly instalments.
Being able to afford and continue to pay your credit instalments are key to using credit wisely.
READ: Pitfalls of personal loans explained
Control your money and payments
Make full payments when they are due and prevent falling into arrears. This will keep your cost of credit low and help you to service your needs and wants in the future.
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