Money – I work well with money

Introduction 

Working well with yours and others money is essential to a successful career. This means that you are able to create a budget and stick to it. You are also able to save money. Make sure that you save, even if it is a little. Do your best to save 10% of your money each time you earn and put it into an emergency fund, no matter how small or how big the amount. If you can get into this habit, you will see your money begin to grow.  

Benefits of working well with money

1. You can enjoy financial security as you accumulate savings. 

2. You will enjoy peace of mind knowing that you have money for a rainy day.

3. You can afford some nice things for yourself and your loved ones.

4. You can help those in your community to receive financial support.

Skill example

I began saving 10% of the money I received each month and put it into a 30-day bank account. I stuck to my budget and saved 10% each month. After a year I was able to begin a course to develop more of my skills while still saving more money in my emergency fund. 

Shaun’s’ story

Shaun is thirty-five years old. He is single and has many friends. Shaun works late most days and grabs something on his way back from work. Shaun and his friends have a weekend ritual, braai night, where they each take turns buying food and drinks. This is costly, but they all have great fun together.

He is very fashionable and shops monthly for the latest trends. Shaun has a decent job but seems to spend all the money he makes. One day Shaun decided to do a budget to begin planning to buy his own car and eventually his own home. Shaun realised that he would need a big deposit to get a car and a home and started saving 20% of his salary each month so he could put 10% into savings and 10% into an emergency fund for if ever he needed. 

Once Shaun had made that decision and stuck to it, he realised that he was able to adjust other areas in his life so that he had enough to save. He started making his own dinner instead of buying take-aways. He also agreed with his friends that they bring their own drinks and each take turns in supplying the food. Shaun loved the feeling of knowing he had money in the bank and felt less worried about his future.  

How to manage your money

Managing money effectively is an important life skill that can help you achieve financial stability and reach your financial goals. Here are some tips to help you manage your money:

1. Set financial goals: Identify your short-term and long-term financial goals and make a plan to achieve them. This can include paying off debt, saving for retirement, or saving for a down payment on a house.
2. Create a budget: Creating a budget can help you track your income and expenses and identify areas where you can cut back on spending. Make sure to include all of your expenses, including fixed expenses like rent or mortgage payments, as well as variable expenses like groceries or entertainment.
3. Reduce debt: If you have debt, make a plan to pay it off as quickly as possible. Focus on paying off high-interest debt first, such as credit card debt, and consider consolidating your debt to make it more manageable.
4. Save for emergencies: Set aside money in an emergency fund to cover unexpected expenses like car repairs or medical bills. Aim to save at least three to six months' worth of living expenses.
5. Invest in your future: Consider investing in your future by contributing to a retirement account. Start saving as early as possible to take advantage of compound interest and maximise your savings.
6. Live within your means: Avoid overspending and live within your means by sticking to your budget and avoiding unnecessary expenses. Consider ways to reduce your expenses, such as cutting back on eating out or shopping for cheaper alternatives.
7. Seek help if needed: If you're struggling to manage your money, consider seeking help from a financial advisor or credit counselor. They can provide guidance on budgeting, debt management, and investing.

Remember that managing money is a lifelong skill that requires discipline and practice. Start by setting financial goals, creating a budget, reducing debt, saving for emergencies, investing in your future, living within your means, and seeking help if needed. With time and effort, you can achieve financial stability and reach your financial goals.