Tips to improve your financial habits through budgeting and saving

After a tumultuous 2020 filled with economic uncertainty and financial instability, having a sound financial plan to fall back on is paramount. To make sure that you are being WalletWise, go back to basics: set up a budget and savings plan to see you through the year. 

Set yourself up for financial success in 2021. It’s important that you consider budgeting and saving, and use the most beneficial saving methods to do this. 

“Unfortunately, many people have had to adapt to harsh economic conditions, leaving them with very little money to work with, and on the back of this year’s budget speech it’s all the more necessary to have the right financial habits,” says Mbere.

“To have a successful year, financially, you need to practice healthy financial habits keeping in mind what your goals are for the year ahead. These habits can include anything from saving more aggressively, looking for affordable investments, and most  importantly, budgeting.”

There are many external factors that may challenge your personal finances. Inflation has affected us all, with dramatic increases in food prices and essentials, among other things. The best way to get a handle on these is to ensure that you stay in the know and consistently adapt as you move along. 

Here are some ways to improve your financial habits through budgeting and saving. 

Draw up a monthly budget

There are many ways you can protect your finances, but the first point you should consider is budgeting. Break down your monthly expenses against your monthly income. Figure out how much money you can afford to save once you have serviced any debt you might have. Get rid of any unnecessary expenses so you can stretch your money even further.  

Have a savings account

Once you have figured out how much money you can afford to save, look for a savings account that offers you high interest rates and a low monthly service fee. Before you open any savings account, research all the available options on the market. Look for an option that best suits your pocket, while giving you maximum returns on your savings.  

Many people have a savings target for the year, but what matters most is that you are putting money away to ensure you’re financially independent and prepared for a rainy day. 

In these unprecedented times, it’s important to find ways to stay on the right track to achieving your goals. Whether you work with a financial planner or keep track of your spending and savings habits by holding yourself accountable, you are guaranteed a prosperous financial year if you maintain self-discipline. Be WalletWise!

This article was paid for by Standard Bank.