You don’t need to have been a straight A Accounting student to know that good financial planning beats spending and then praying that an emergency situation doesn’t arise. It is delusional to assume that unforeseen events will never take place. There’s always disease, death and accidents and we are all prone top them. The only difference is that those who plan for a rainy day need not have sleepless nights and headaches about it. Auditing firms in Johannesburg know this
In a time of company downsizing, recession and many businesses retrenching people, the guarantees are limited and the only financial security you may have is to take stock of your income and expenditure. Now this doesn’t mean that you only buy when there is a 50% sale only but it means that you take stock of your buying and spending habits. A good and solid financial plan must be unique and fit your individual lifestyle, needs and income. Some of the attributes of good financial plan:
- A monthly budget of the things that you need.
- Keep track of income and expenditure. Make sure that expenditure doesn’t exceed income.
- Try to buy everything in bulk.
- Take advantage of discounts and sales.
- Buy what you need first (essentials) before buying the luxuries.
- Always leave some extra cash to save for a rainy day.
A financial plan and a well structured budget will help you avoid impulse buying and keep you from spending money on items you don’t need. Also keeping track of expenditure and income will help keep your credit card rate at bay. This helps you to also avoid debt and be in good standing with your credit provider.
To those who are bonified shopaholics, this may be a bit difficult at first but you have to give it a try before you completely dismiss it. Financial planning does take some discipline and will power but the benefits are huge and you’ll be thankful that you did it. You’ll find that it gives you more financial freedom and the financial security you need to pursue your goals.