FINANCIAL FREEDOM

If you’re struggling with your finances, you are not alone. Most people’s budgets are stretched, and 51% of respondents in the survey indicated they couldn’t make debt repayments, and 41% overspent on their credit cards.

These two statistics show that there’s little extra cash to go around. If consumers don’t have sufficient funds to make payments on debt, the chances are low that they will be saving money.

Most people is paying almost all of their income on debt repayments.

More than half of people have no savings

It comes as no surprise that 55% of survey participants had no savings plan in place,  a savings plan is essential if you want to buy something big such as a car or a house or save for your retirement.

A second survey shows that 53.3% of the respondents can’t save, because they don’t have sufficient funds to cover monthly expenses and savings.

The most crucial point of taking control of your finances is to be able to measure what you earn and what you spend. Start saving, even if it's as little as 3% of your monthly salary. It is good to encourage a healthy financial habit.

It is also crucial to pay off old debts and not make new ones, otherwise the vicious cycle just starts all over again.

Keep a record of every cent you spend

One good way of finding out where your money is going is jotting down every cent you spend and what you spend it on for a one-month period. Include everything, from tips to car guards, to tuck shop money for the kids.

It is important to keep track of your financial situation throughout the month, and if you overspend, adjust your budget accordingly. Becoming free from debt means cutting your expenditure and trying to simplify the way you live.

Always make time for fun,  Do things that cost little or nothing, such as going for walks, exercising at home, play with your kids, helping others, and just generally spend more time with people you care about. This will relieve some of the stress you are feeling about your financial situation, and also remind of the important things in your life money cannot buy.

Here are a few more tips on moving from being a debtor to being a saver.

* Find out exactly how much you earn and make an effort to live within your means.
* Draw up a budget for yourself and your household, and stick to it.
* If your expenses are too high, some household costs will have to be cut.
* If you can’t afford to pay your clothing accounts, arrange for a settlement and cut up your cards.
* Avoid taking on all new debt unless you absolutely have to.
* Avoid micro-loans if you can’t afford the repayment. Also these interest payments can be financially crippling.
* Find out where you can invest your money where you will earn a good return.
* Teach your children to become credit savvy.
* Think of the peace of mind you will have if you know you can pay all your accounts and still have some savings.