It is possible to set up a budget plan to attain your financial goals be it to budget for a renovation, budget for the deposit on your new home or for a luxury purchase but it does need a plan and when adhered to rewards you with what you want. The best part about starting out with a budget plan is that once you have started you will begin to budget and save for a better life overall. Budgeting and finding ways of saving is an achievement in itself, the fruits of your savings and the personal satisfaction that go with attaining your desires is priceless.

Here are 4 easy steps to achieve financial success:

  1. List your financial goals: This can be done on a sheet of paper or on an Excel spread sheet. Take your time to think about your desires for example: Saving money to put down a deposit on a home loan. Saving money to further your education or save for a holiday. Long term and short term goals are necessary to start a budget plan.
  2.  Salary & Expenditure: How much do you earn after tax? Determine your exact pay you take home each month. Do not include extras such as bonuses or overtime. Then write down the total fixed expenses, such as rent, vehicle payments, Medical Aid, Student loans. Then make a list of variable expenses, such as groceries, clothing and entertainment.
  3. Determine your budget & savings: After you have analysed your income and expenditure, allocate an amount to spend on each item.  Fixed expenses stay the same so you will know exactly how much to put aside for rent and medical payments. Groceries vary so you could give an estimate of how much to spend on food each day.  Set a budget for entertainment as well; people tend to overspend when they socialize. Allocate a set amount for savings each month; generally an estimated amount of 10% of your monthly salary should be saved.
  4. Budget evaluation: Monitor your spending and check that your spending corresponds with your budget plan.  Keep your slips and check if you are sticking to your limit. Adjust your spending accordingly and remember to save for a rainy day.

Keep your long term and short term goals visible to see each day. It will remind you of the reason you are setting money aside. A budget plan is in place to attain your financial goals and therefore it is necessary to stay responsible and disciplined in pursuit of your dreams.

Many people have attained success by keeping to their daily budget and reinforcing their future endeavours.  Impulse purchases are common and majority of people live above their mean, in essence you should not spend more than you earn.  Set a budget aside for the amount you spend on your credit card; it is easy to slip up and sabotage your financial plan.  A home is your most treasured asset, plan to own a home and live the dream.