February 2025 Finance Newsletter: Build a Better Budget

One Money Move: Create and master your monthly budget

In February of each year, the minister of finance presents the national budget.  It’s the perfect time to become minister of your own finances, take ownership of your financial health and work on your personal budget.

A budget has three parts – money coming in (income), money going out (expenses) and the outcome (what’s left after expenses).  A well-constructed budget tells your money where to go instead of wondering where it went.  Having a budget helps you feel in control of your finances and your financial health.

Your “Money Move” this month is to spend some time working on your budget.

If you are battling to make ends meet and you regularly end up with more month than money, you might feel like you are SIMPLY SURVIVING.  Thandi was in this position and reached out to a financial coach for support. Her coach showed her how to put a budget together.  She had a closer look at her expenses and debt commitments.  She has realised that she needed to make some short-term changes for long-term gain.  She is more aware of where her money is going and is committed to sticking to her budget to get her spending and debt situation under control.

Perhaps you are STILL STRIVING like Raj who recently got married and has a baby on the way.  He did some work on his budget last year, and it has made a big difference to his financial well-being.  With the new baby arriving soon, his goals, priorities and commitments have changed and he knows he needs to re-look his budget.

Thabo has been checking in regularly with a financial coach for a few years now.  When it comes to his budget, he feels like he is THRIVING.  He has had a budget in place for a while and is sticking to it.  His New Year’s resolution was to focus on saving, particularly retirement savings, so he's going to meet with his coach to see how he can refine his budget to redirect more funds to saving.

Whatever stage you are at on your financial journey - surviving, striving or thriving, learning how to budget and sticking to your budget is a vital skill to learn and practice.  If there is one money move you make this month, chat to a financial coach about building or bettering your budget.