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BUSINESS & FINANCE / ALAN HEYMANN

New Year, Same Challenges.

By: Alan Heymann, Financial Planner, Sasfin Wealth

What is the defini-                   the chances are you will           This is probably your        PAY A LITTLE
           tion of ‘Money             only list a few bills and          biggest mistake, most        EXTRA ON
           Management?’ It is         other expenses off the             experts are recommen-        ALL YOUR
the process of budgeting,             top of your head. If you           ding having 4 – 8 months     DEBTS: YOU
saving, investing, spending or        actually go through your           of necessary living          CAN PAY
otherwise in overseeing the           bank and credit card bills,        expenses.                    YOUR BILLS
cash usage of an individual.          you will be surprised to     5.	 Pay a little extra on all      FASTER
You don’t need to go to               see where you spend                your debts: you can pay      BY DOING
university to manage your             your money.                        your bills faster by doing   A SIMPLE
money wisely. Just take care    2.	 Forgetting those addi-               a simple small addition      SMALL
of the basics, for instance:          tional expenses: Some              to each or paying off one    ADDITION
1.	 Where does all my mo-             of your largest expenses           debt and then putting
                                      on your credit card are            those payments towards
      ney go? It is important         holidays, car trouble and          the remaining debts with
      to track your monthly           self-indulgences. You              the highest rate first, you
      spend.                          could easily turn them             will be on a path to being
2.	 How much can I invest?            into monthly expenses              debt free.
      Develop a household             by dividing the typical      6.	 Don’t borrow from your
      budget you can follow.          spend each year by 12.             mortgage: You will be
3.	 What will it take to make   3.	 Spending more than                   putting your home on the
      the amount of money             you really need to: think          line so this is not a good
      I keep greater than the         of ways to reduce your             idea if there is half a
      amount I spend?                 spending patterns.                 chance you won’t be able
Common money manage-                  Regardless of how much             to make the payment.
ment mistakes that you are            you make there are many      7.	 Never borrow from your
probably making:                      more people who survive            retirement savings: There
1.	 Having only a rough idea          on way less than you do.           are taxes and big con-
      in your head of how you         Have you done compari-             sequences to your long
      spend your income(s):           sons shopping for things           term retirement plan.
      You can’t with any cer-         like food, insurance         You retire from work, not from
      tainty manage what you          policies, and cell phone     financial responsibilities.
      don’t know. If I ask how        plans? Are you spending      It’s your strategy, it’s no one
      much you are spending,          for something you really     else’s, speak to an expert.
                                      need or something you
                                      just want?
                                4.	 Living payday to payday:

                                                                                                      Save time and
                                                                                                      frustration - get on
                                                                                                      board with banking
                                                                                                      technology.

36 | FEBRUARY / MARCH 2016 CEMAIR SKYNEWS
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