Supporting a household is a stressful job, especially if you’re a breadwinner. In South Africa, it is estimated that almost 38% of households have a woman as the main or only breadwinner. To put it in perspective, over 6 million homes in our country have a woman as the primary breadwinner.

 

In recent years, the mindset of our society has shifted to reach gender equality. More girls are staying in school, more women have prominent leadership positions, and more laws are being reformed to achieve gender equality. However in South Africa women are still striving to reach financial stability and freedom. Here are six budgeting tips to help you reach your financial stability and lead you towards financial freedom:

1. Create a budget

Before you create a budget, you need to have a clear understanding of your total income and your total expenses. You can do this by completing your Debt Assessment on our platform. This also gives you an idea around how much of your income goes towards debt and other expenses. Once you have this understanding you will be able to create a budget aligned to your short term and long term goals. 

2. Pay off your high-interest debt first

Many people choose to pay off their biggest debts first, but this may not be smart if you have other smaller debts with higher interest rates. This would save you a substantial amount of money in the long run and improve your debt utilization, especially if you want to maintain a good credit score.

3. Review your spending

Running a household means a range of expenses like food, water, electricity,

rent or bond payments, school fees, debt, clothing, transport or petrol, and entertainment. Cutting down on any of these may seem impossible as they are necessities when running a household, but there are ways to do so. For example If you’re ordering take out 4 times a week, consider making light meal to take to work instead.. This will help you cut down on unnecessary spending and improve your cash flow.

4. Save for emergencies

Having to support a household comes with unexpected expenses. Examples of this are medical emergencies and repairs around the house. These expenses can be prepared for if you have some money saved up. We know that saving is not easy, especially if you are the sole breadwinner, but putting away a little bit of cash every month will go a long way and it prevents you from taking out any additional debt which would add to your repayments every month.

5. Save for a reason

Savings should not only be used for emergencies, but also for specific goals you or your family may have. Whether you want to go on a holiday at the end of the year, if you want to throw a big birthday party, or if your child needs an outfit for their matric dance. If you have a savings fund for occasions and goals you would not have to go into further debt which will help you achieve and maintain financial stability.

6. Be savvy

As much as we still want to save we also still need to live and experience life. There are some experiences that still are sometimes inexpensive or even free. Examples of this would be going to public parks and spaces, going to a nursery with a playground and/or petting zoo, or going to a museum.

 

The Bottom Line

You need to remember that you can’t do everything and that your best is enough. But by following some of our tips and tricks, these can help you improve your financial life.

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