Assess where you currently are

Matching your current financial situation to how you spend can make it easier to navigate your way around a budget that you won't break. Understanding your money personality is also vital in knowing where your strengths are and how your weaknesses impact the way you spend. A practical solution to financial planning is going through your bank statements from the past 2-3 months as a starting point. This will let you see a realistic picture of your income, how it is spent, and where you need to cut back. You may be surprised at some of the additional charges or fees you may have forgotten to cancel. 

Choose a budgeting rule that works for you

Would your budget be more suitable for the 50/30/20 budget rule or the 80/20 budget rule? With so many ways to choose when it comes to budgeting for your needs, wants and savings to keep you going when the going gets tough it can get confusing. However, choosing a way that helps you cover your needs, wants and savings without putting a strain on you financially is important. Being honest about what you can and cannot do financially will also make your budgeting journey easier.

Back and track through an app

Breaking bad money habits also means being able to stay on top of every Rand you spend. It can get a bit tricky to calculate off the top of your head, especially if you have been in a space where you have to juggle more than one financial responsibility. Budgeting apps are great way to track your spending, stick to a budget and see when you are about to go over what you planned to spend. Make sure you have a secure app that can help you back up your budget on your phone such as Mint, 22Seven, Wallet, and GoodBudget app to name a few to help you become financially savvy.

Avoid making plans with money that has not entered your account

Whether it means waiting for a deal to fall through to get paid, waiting for your income to reflect or waiting for payment from someone, it is important not to plan with finances that have not reflected in your account. It is a slippery slope to overspending and falling into debt should something go wrong.

Start having money goals

The ultimate goal is to have your finances working for you instead of the other way around. Therefore, money goals are crucial when it comes to creating a solid financial plan. You can learn how to build financial wellness here. Your money goals will paint a clearer picture on what needs to be done, where you need to cut back and how you can optimize what you already have to get you where you need to be.