This week saw the start of the Free State provincial departments presenting their 2018/19 financial budget votes in front of the community members in various locations and towns. Dumelang News took to the streets to talk community members about their household monthly budget allocation and the importance of it. This is what they had to say:
Shanise Botha (Rental agent)
For me, it is very difficult lately to even draw up a monthly budget for my house – even if I use to do it – due to the planning of my wedding in November. But hey, nothing is more important to know how or where your money goes every month. I do know that between me and my fiancé’s monthly income combined, 30 percent of it has to go grocery, 20 percent will be spent on transport like fuel for our car while 15 percent is strictly for our savings.
Lebogang Masimong(Rose Bank lecturer on accounting and financial management) You know, choosing a lifestyle that is below your earnings is more important than anything because your finance defines your life style. I spend 65 percent of my monthly income on my day-to-day life style expenses and the rest goes to savings (long and short term) and investments which is about 35 percent. However, like everyone, there is a time when one becomes reckless with finances and that is a problem that could potentially lead you to fall into a trap of debts if you did not do a proper budget from previous months. A good budget helps you reach your spending and savings goals.
Andy Crawford (Self-employed)
Budgeting is for people who earn salaries every month… not businessmen like me. As much one would want to draft his budget on a monthly basis but it becomes very difficult when business drops because you will then have nothing and same as when it picks-up. The only thing everyone needs to do is to avoid unnecessary spending mostly on expensive things when the same thing you can get at a cheaper price elsewhere.
Maria Motopela (pensioner)
I do my budget every month before receiving my pension, and because I know how much it is, I am able to write down everything I need – more so on groceries – and still be able to pay my monthly instalments such as society and clothing accounts for my children. I have learned that going to the shop without knowing exactly what are you going to buy is a recipe for overspending on unnecessary things.
Emma Kama (law firm receptionist)
Iyohh…believe me, I have tried that. I use to do my budget from time to time but it never last long or I never stick to it at all. Budgeting is very difficult for people like me, having to cut down my lifestyle is like dieting by not eating.
Reasons Why You Should Budget Your Money: Budgeting is one of the biggest keys to really managing your money. Many people are often turned off by the simple term budget. They associate it with restrictions and a lot of hassle and headaches. They may feel like they are too poor to budget or have other budgeting excuses. However, budgeting can actually save you money, and allow you to have more to spend by helping you to make the most of your money. Your budgeting style can determine how successful you are at budgeting.