UKZN Extended Learning hosted a Personal Finance Seminar on the 19th April 2016 where Mr Steven Msomi shared his expertise on the topic: Personal Finance and Wealth Management Strategies to cushion the effect of SA’s Credit Rating Downgrade.
UEL have put together their own tips on personal finance. Please see below some useful steps in becoming closer to achieve financial freedom:
- Learn Self-Control
Shopping habits are usually the number one reason that land people in financial difficulty each month. More to the point, they struggle to control the impulse to buy items that they can’t afford. If you are serious about saving, you need to plan your shopping in a very structured way and resist the urge to spend.
- Know Where Your Money Goes – Budgeting 101
Once you’ve gone through a few personal finance books, you’ll realise how important it is to make sure your expenses aren’t exceeding your income. The best way to do this is by budgeting. Once you see how your morning java adds up over the course of a month, you’ll realise that making small, manageable changes in your everyday expenses can have just as big of an impact on your financial situation as getting a raise. In addition, keeping your recurring monthly expenses as low as possible will also save you big bucks over time. If you don’t waste your money on a posh apartment now, you might be able to afford a nice condo or a house before you know it.
- Start an Emergency Fund
One of personal finance’s oft-repeated mantras is “pay yourself first”. No matter how much you owe in student loans or credit card debt and no matter how low your salary may seem, it’s wise to find some amount – any amount – of money in your budget to save in an emergency fund every month.
Having money in savings to use for emergencies can really keep you out of trouble financially and help you sleep better at night. Also, if you get into the habit of saving money and treating it as a non-negotiable monthly “expense”, pretty soon you’ll have more than just emergency money saved up: you’ll have retirement money, vacation money and even money for a home down payment.
- Take control of your Debt
A lifestyle funded by debt decreases your chances of ever becoming financially independent. Essentially all you are doing is making the shareholders of banks very wealthy by paying exorbitant interest rates. Start with paying off the debt with the highest interest rate, and thereafter avoid credit cards, overdrafts, loans etc.
Some of these tips have been taken from: 8 Financial Tips For Young Adults | Investopedia http://www.investopedia.com/articles/younginvestors/08/eight-tips.asp#ixzz46pxQa4bp