Money, good to have! Money, not enough! Money, should I get a debt review?

We all overspent, and you friend, if you don’t you are probably one in a million so this writing might not be for you. The other 9999999 people some time or the other, find difficulty with cash flow due to various reasons why. Unfortunately, this tendency escalates rather than reduce and soon answers run out.  

In order to make your salary work, you need to employ certain skills which you hopefully will learn here. 

First and foremost we need to determine your expenditure. This is a guide so my figures are guestimations based on one family with one child, for a bigger family adjust the figures. Please note everything is worked to 1-month expenditure.

  • Home mortgage or rent amount     $5700.00

  • Personal insurance                                   850.00

  • Shorterm Insurance                                 440.00

  • Medical aid                                                 2800.00

  • groceries                                                      950.00

  • Meat & greens                                              49.00

  • Fuel monthly                                               850.00 

  • Vehicle finance repayment                  2229.00

  • Electricity and water                                110.00

  • Vehicle services and tires                         55.00

  • Female clothing                                          325.00

  • Female lingerie                                           250.00

  • Male clothing                                               150.00

  • Children clothing                                        150.00

  • School fees                                                      28.00 

  • Memberships                                                 33.00

  • Special event saving $2500                     208.00  

  • Anual Holiday $8500                                708.00

  • Unbudgeted spending                                150.00

               Total income ex-Uncle Sam   $16035.00

                  Actual salary monthly           $16500.00

  • Note: I did not calculate the credit card as a separate cost.  

     

      Practical wheels? Naw, I would not think so! 

    On this budget, there’s not much room for mistakes or misjudgment so proper spending must be a strictly controlled expenditure.

    Factors that could readjust your cash flow marginally are usually short-term however, you might need to trade your wheels for another, this adjustment might be significantly more, would there not be wisdom in buying a vehicle with a long lifespan and long maintenance guarantee, say 5 years. Inclusive of that consider adding an extended guarantee onto your finance package. Sure your vehicle is going to cost more monthly but looks at the benefits:  

  • Trouble free driving for say 5 years

  • Extended maintenance guarantee gives, even more, trouble-free driving 

  • Assuming you wish to trade it after 5 years the new owner will have a secondhand vehicle with maintenance guarantee.

    Medical aids have a tendency to short pay their claims causing you to pay from your income for additional medication or consultation so if this is your experience then one would have to make the sums once more.  Say on a law of average you need to pay in $50 monthly have a look at what is on offer on medical aids within your price range inclusive of the extra $50 with the understanding that their rules do not require subsidy payments from you.  

    Short-term insurance companies are extremely competing and offer an opportunity to save some money which will be quite handy towards your increased expenses, so shopping around annually can be quite a rewarding exercise.

    Your mortgage loan has some real interesting finance combinations, soon as you have had it say for a number of years you can access the surplus funds providing you put it to good use, like for example to repay your credit card for a certain month. How can that be a saving you may ask so assuming your credit card charge 24% your mortgage bond interest is, say 14% each and every month your saving is automatically 10% monthly which after say 12 months repaid your credit card loan.

    The following suggestions about tires are real simple yet do result in a saving over a term. Ensure that your tire pressure is always according to manufacturers specifications and develop a habit to regularly check tire pressure, three monthly, depending on the road surface you travel, have your vehicle’s wheel alignment evaluated more frequently.     

  • Clothing and the washing thereof is a real edgy point of discussion, so I will not dwell long here. Accessive washing as a result of a wearing habit, say daily then one can expect much higher wear as the washing powder and softners weaken the clothing strands. Put another way wearing stinky clothes is not an option, agreed. In winter I discovered that I could wear a shirt for two days without a smell reducing the pressure on washing and Ironing.

    There is only one other place in a normal home where a saving can be brought about and that is with a solid electric cooking plate. It consumes an armload of electricity when connected and one has to cook to eat! I discovered a massive saving by disconnecting the solid plates and installing four gas burners.

    Finally, the one monster at home that consumes energy almost never-ending, disconnect your geyser? No way, reduce the temperature in Summer to 60 degrees centigrade. In winter you need to evaluate what temperature works best. You will find that your saving will be quite substantial.

     

     

    I truly hope that these ideas might save you money and help you to survive on your salary.