How To Budget

Ever wondered why you are suddenly broke? Well I have. Do you ever find yourself in the 3rd week of the month with only R50 to your name? Okay okay, fifty bucks is just pushing it, but I think you get what I mean.

If you ever find yourself in that situation know that you are 'broke'. The class room definition for that is you don't have enough money to sustain your lifestyle until your next pay check. If you are in this situation at least be grateful to the fact that you are not poor, that’s when you don't have any money at all and the contents of your fridge consist of a tray of eggs and a bottle of milk that's about to go off in a few days if it hasn't gone off a few weeks ago.

I'm sure the students would relate to this very well being a former student myself. I remember those days when my mother sent me my allowance. It was like Christmas for a five year old. My journey from the ATM meant that I was one of the cool kids on campus, and that's where the problem was. My social status came at a price.

Don't get me wrong, being broke happens to anyone as long as you have money because you can't be broke if you never had any money to begin with.

This is a huge problem that many people struggle with, even when they have a budget. So you still wondering why you are broke waaaaay before the month is even over, even though you have a budget that you try to follow religiously? Well the answer is quite simple. Firstly you like things. In other words you want to be seen at every social event, you want to fit in with the cool crowd and you want to be seen wearing the coolest fashion brands. Secondly you TRY to follow your budget. The problem with TRYING is that living life on a budget and prioritising your needs is not part of your lifestyle.

Living life based on what you need and not entirely on what you want shouldn't be equated with giving up everything to live like a monk.

You want to know how to stop being so broke? Well start by changing your attitude and your approach towards life. If you can't afford it then don't buy it because you probably don't need it.

Are you concerned about being stylish and looking good? There are other ways of achieving that without having to max out your credit card or spending the money you saved to buy baby formula. Read up on latest fashion brands and create your own style/outfits based on what you have in your closet or shop at an affordable store. No one really cares what brand you are wearing especially if you are going to end up on the street due to not paying rent. Who's ever heard of a stylish hobo?

We all have our own reasons why we end broke, but the basics are all the same. It's called financial mismanagement, lack of planning or the need to fit in.

Some people live on almost nothing because of poverty issues or unemployment, but they still manage to survive on the little that they get. The rest of us are just reckless with our spending.

So, I think I have established why most people find themselves in the 'broke' situation half way into the month. The solution is very simple; write yourself a realistic budget which takes your lifestyle into account. Instead of trying to change your life into something it's not rather just focus on making it more structured.

If you enjoy going out with your friends/partner then it would be a good idea to add leisure to your budget. My lovely girlfriend and I tried this and we realised that we were able to save a lot of money which we ended up using to finance our holiday.

Prioritise your needs and make sure you take care of them first before getting involved in something else. You don't need to spend R200.00 at a sushi restaurant if that's your last R200 for the month. Rather buy something you know will last until your next pay check because that's what you need. Your friends will understand if you can't come out with them every weekend provided they are truly your friends. There's nothing more embarrassing than being part of the cool gang then all of a sudden you go broke and have to resort to begging your friends for money. That's when everybody realises what a looser you are.

There are exceptions though, such as family emergencies or unexpected costs, but that's not what I'm talking about here.

Stop trying to be cool. Stop spending money you don't have. If you can't afford it, don’t buy. Debt is not your friend, so be smart about how much debt you are willing to take on and if you can afford it while maintaining a comfortable lifestyle.

Have a safety stash. That probably sounds like something a drug dealer would have, Lmao. A safety stash is just extra money that you put away for when you unexpectedly run out of money (I doubt anyone runs out of money 'unexpectedly’, but such things do happen and that's why people go broke).

 Many people end up broke because they want to do all the cool things there is. When you are broke no one really cares how cool or awesome you used to be. All they'll be doing is laughing at you.

Spend your money on what you need and you'll have enough to spend on what you want.

This will do for now in order to get you started on the journey of becoming your own life guru. Until next time...

It's Life