Have you ever heard someone say that they are going to pay for a big purchase with their 'savings' or talk about how they are 'saving up' for a holiday, or a car or a house?
Drawing up a monthly budget and sticking to it may seem daunting, but it's easier than you think.
Once you have created a budget it will be easier to make all of your other spending decisions.
You will know immediately whether or not you can afford a certain item.
None of us know what the future will bring, which is why insurance is a good idea for those costly items that you can't afford to lose.When you start spending your money on things like a house, car, laptop or a TV, you will also want to protect these items against loss, damage or theft.If you have a family who are dependent on your income, you should also consider insuring your life against death and disability. That way, if anything happens to you, your family will be protected against any debts you leave behind, like your home loan repayments or funeral expenses.
Having a bank account means that you have a safe, secure place to keep your money.
It will be easier to make all of your other spending decisions. You will know immediately whether or not you can afford a certain item.
Having a bank account lets you keep your money safe and lets you perform transactions, borrow and save money. When you use your bank account for something, it is called performing a 'transaction'.A transaction refers to any time you take money out of, put money into or move money from your bank account into another account.
Most banks will charge you a small fee for every transaction you do.They will also charge you every time you use a debit card, a credit card or a cheque card. Some banks charge a set amount of money (bank fees) for a number of transactions every month, so try to look out for these.