Debt Counseling

Manage your budget

Discover how you can manage your budget effectively.

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Put aside money for savings and expenses so that you can achieve your financial goals.

Set your money goals

stay on top of bills

save for emergencies

pay for your children's education

save for a down payment on a property

Track you current spending patterns

Having a clear picture of your regular expenses and spending habits will help you set up your budget. Track what you spend money on today and look at your spending habits over a one-two month period
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Record your income

Record all your income sources including the amount and frequency. This could be from:
Wages
Investments
Rentals
Alternate income sources – part time activities/jobs
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Track your expenses

fixed-expenses

Fixed expenses

These include rental payment, mortgage payments, utility bills, household expenses like groceries and food, insurance premiums, school fees etc.

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Variable/unexpected expenses

These include unexpected expenses, like vehicle maintenance, additional fees, medical bills etc. You will not be able to budget for these, but it is important to track them so that you understand how much is being spent on such items.

debt-expenses

Debt expenses

These expenses include loan repayments/ installments; credit card bills etc.

Track your savings/ start saving

The money you have left after expenses and savings is your spending money. This money can be put away to achieve some of your goals and 'wants'. Set up a spending limit so that you can maximise savings and reduce debt expenses.
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You do not need any special app or software. You can simply track these items on an excel sheet and this will help you understand your spending behaviour better

Managing your Debts

All debts have a cost which must be repaid. However, not all debt is bad.
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How do you differentiate between a good and bad debt?

Good debt

This debt can be used strategically to help you grow wealth over time Example: Investing in a property or assets that might yield financial growth over a period of time. NB: This is not guaranteed or risk free.
good-debt

Bad debt

This is debt which is incurred without the objective of financial growth and is not favourable Example - Debt incurred by extravagant lifestyle choices that will incur additional costs if not repaid quickly and on time.
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Understand your debts better

Be aware of your debts
and the cost they incur.
Consider what you earn, owe and spend.
Track your expenditure, consider your spending habits, and think about how you can spend more efficiently.
Consolidate your debts
so that you can track them more efficiently as this will help you repay faster.
Pay your debts on time
and pay the correct amount to avoid unnecessary charges. Money saved is money earned.
Try to pay the outstanding balance
or more than the minimum amount.
Have a backup plan.
It may help to draw from your savings to pay off some debts. Larger debts should be paid off earlier as you will be paying more over time.

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