Five Fundamentals

We are in the midst of a global recession - the world economy has had the mother of all sugar crashes and after years of living a good life scoffing down credit it is time to take stock and get back on track. The only thing that can save us now? Getting financially fit again...

Step 1 - shift the mindset

Deciding to get physically fit takes a change in mindset, a watershed moment when you have had enough of being unhealthy and choose to change your lifestyle. Similarly, getting your finances in order requires a dedication on your part to make it work. If you really want to save yourself money, make a commitment to yourself and to the cause and follow your plan religiously. There already? Half the battle is won.

Step 2 - make a list

Just as it is important to make a list of all the foods you eat so you can work out what to cut out, knowing exactly how you spend your money is crucial if you plan to shave some expenses off your lifestyle. Make a list of all your expenses during a given time frame - and double up by going through your bank statements to ensure that nothing slips through the cracks. Don't forget those late afternoon chocolates and the coins you used to pay the car guard. Include everything; then move on.

Step 3 - draw up a budget

While eating and exercise plans are your blueprints for successes in health, drawing up a budget is crucial if you plan to make significant inroads into your personal finances. Knowing what you spend each month allows you to plan ahead and, even more importantly, it will highlight where and when you save money by having each month side by side. It is the best way to see how you are progressing and without one you may not realise how your new approach has affected your savings. Draw one up. TODAY.

Step 4 - Embrace Technology

You use heart rate monitors as you run and check your BMI to track your progress when you exercise - isn't it time you embraced technology in your personal finances as well? Banking online is the fastest way for you to shed a few Rands off your monthly expenses.
Apart from being able to do it from the comfort of your home (meaning you'll be less inclined to find an excuse to manage your money) you will save money on everything from money transfers to checking your balance. Banks have begun increasing the costs of banking within a branch to save on their own admin costs, so by banking online you'll negate this increase.
Need an example? You could spend just under R20 every time you make an account payment from a branch with many transactional accounts. The same thing online? Free with an electronic account.

Step 5 - Little things add up

The little things add up - make no mistake about it. Sticking to your diet is crucial if you want to see the best results - cutting down costs is no different.
Drawing money from another bank's ATM has got to be one of the most needless wastes of money in this country. You'll pay around R7 extra for every transaction you make from another bank's ATM. Do that a couple of times a month and you've chucked away a Friday lunch.
Sites like www.justmoney.co.za allow you to compare bank costs in real time. Plug in the way you bank, compare the various costs within the marketplace and make a call on where you should be banking. And please - don't just bank with the same bank your parents did - times have changed - its time you made the change too.

The fastest way to waste money on bank charges? Become apathetic about the little things.