How do I budget?

If your money archetype is the Mattress Banker, you already know that budgeting is essential to take care of yourself and your loved ones. But exactly how to budget can be a head-scratcher.

Luckily, we have a Money Secret up our sleeve. We’ve put together a step-by-step guide on budgeting. Because we don’t underestimate how well-managed finances can change lives.

Step 1: Track your expenses.To draw up an action plan of how you intend to budget, you first need to figure out what you’re spending your hard-earned money on. Don’t exclude anything. Even small expenses like a clothing item on sale or a magwenya on the way to work should be taken into account.

Step 2: Make a priority list.Once you have an accurate list of expenses, divide the list into must-haves and nice-to-haves. Your bond or rent is an essential expense. Branded shoes are not.

Step 3: Take action.
Now that you’ve prioritised, take action. If you’re not using your music streaming subscription, cancel it, or downgrade to a basic satellite TV package.

For a detailed look at how to budget click here.

Also try the Nedbank My Financial Life tool here.

This information is intended for general information purposes only and does not constitute legal advice.

Shape up your money

As a Mattress Banker, you are a responsible saver and know a thing or two about working with money. But there’s always room for improvement.

Unfortunately, inflation is a reality. This means that the cost of living keeps rising, while the value of your money stays the same, or even becomes less.

Fortunately, you don’t have to be a millionaire to make good money decisions or to invest.

We’ve put together a few Money Secrets to help you get financially fit:

• Get serious about growing your savings.
• Set goals, be realistic, and track your progress to avoid losing sight of your savings goals.
• Get professional help and insight from a financial planner.
• Read up and broaden your knowledge to grow your money.
• Stick to your game plan and don’t act impulsively.

Also take a look at Nedbank’s investment plans here.

This information is intended for general information purposes only and does not constitute legal advice.

Should I have debt?

This is a tough question. Surprisingly, the answer is both ‘yes’ and ‘no’. As a Mattress Banker, you should be careful of stepping in the debt trap.

Debt can be divided into good and bad debt. It’s acceptable to have good debt such as home loans and study loans. The reason for this is that an asset such as a house increases in value over time, while a study loan empowers an individual to qualify for well-paying jobs, which leads to a better standard of living.

Bad debt happens when you are living above your financial means. This would include buying branded clothing on account and expensive phone contracts instead of cheaper pay-as-you-go options. These debts make no positive contribution to your life.

For a better understanding of good and bad debt watch this video.

This information is intended for general information purposes only and does not constitute legal advice.