“Trying to keep up with the Khumalos is the quickest way to get into debt,” warns Cheslyn Jacobs, chief commercial officer at TymeBank.
“Live within your means – and that means sitting down with your budget and your bank statements on pay day and carefully planning your finances for the month ahead,” Jacobs says.
Jacobs advises that if you often run out of money shortly after pay day, it may be time to rethink how you manage money when it lands in your account.
“Importantly, how you manage your money on pay day can make or break your finances. You have to be intentional. Having a pay day routine can ensure you cover your monthly expenses, plan for future expenses and put money away for important goals,” says Jacobs.
He further advises that the first step is to start with the basics, meaning you should check your income.
“You should already have a monthly budget set up that reflects your living costs but this is the time to scrutinise your bank statements for things like subscriptions that renew automatically for things you don’t need, debit orders for services you cancelled, high bank charges when there are compelling alternatives available, penalty fees for late payments and more.” It is important to make sure all payments have come through if you are lucky enough to have more than one source of income. Next, review where your money is going. You should have a monthly budget already in place and pay day is the perfect time to go through recent transactions.
Jacobs warns that spotting and fixing these leaks in your budget can free up cash for more important things.
“It may be hard initially, but it can be extremely empowering once you get into the habit. And it will save you financially in the end.”
