Goals and Budgeting

norphilAs we enter the second half of the year, it is necessary to reflect whether we attained the results – or so called resolutions – that we had set for ourselves in the first half.

If we fell short of attaining our goals, or are not happy with our performance, it is time to sit down and look for pointers to figure out what went wrong, because we had plenty of time to do what had to be done.

The reason why we have to do this is because the best predictor of our future behaviour is the results of our past behaviour. If we keep on doing the same things over and over, we can be sure that we will receive the same results again and again.

With the hike in fuel prices a couple of days ago as well as the rise in electricity price, it is also a good time to adjusts our monthly budgets – if there are still consumers who are not using a budget, I recommend that they implement one as soon as possible.

A budget is merely an aid in assisting us on what we are spending our hard earned money. Without a budget, comes month-end, we wonder where all our money disappeared to.

The budget will also help us to cut out unnecessary expenses and look for ways where we can save money; for instance: review your short term insurance policies to ascertain if your premiums can be reduced due to the fact that the current cover on a vehicle is too high.

With Christmas coming up, it is also a good idea to start saving money now on a monthly basis for the inevitable presents that are going to be purchased.

Consumers who just manage to balance their budgets should not feel too comfortable. If they have a lot of creditor obligations, any rise in interest will play havoc with their finances, when the monthly instalments increase accordingly.

It is of utmost importance to get rid of all bad debt (store card debt; furniture debt; credit card debt and unsecured personal loans) as soon as possible before we see an increase in the interest rate.

By doing this the cash flow situation will become more positive and consumers will be able to build up an emergency fund for those rainy day situations, and have more peace of mind.

I can help and have a do it yourself program that is available to consumers to set up their own budgets that cover all types of income, expenses and obligations to credit providers;  as well a program that enable consumers to accelerate the payment of their debt. These two programs have been tried and tested: consumers have paid off all of their bad debt (as described above) between 8 and 22 months sooner.

Philip Nortje
Norphil Debt Management
Cell: 082 953 8434
Fax: 0866 99 5291

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