- November 20, 2022
- Posted by: Bastion team
- Category: World News
People with lower incomes who plan properly are more financially secure than those earning higher salaries but are failing to plan. Photo: File
Last week was the conclusion of this year’s Absa/City Press Money Makeover Challenge. The boot camp is a highlight in my calendar, as it demonstrates the power of financial education to change lives.
The insight I took from this year’s experience was the extent to which people struggle to plan for money events. I have had many conversations with people outside of the challenge and I see a similar trend with anyone who is struggling financially.
People with lower incomes who plan properly are more financially secure than those earning higher salaries but are failing to plan.
Calculate your essential spend
Many people do not budget for their monthly financial obligations. A simple change in behaviour transformed Money Makeover candidate Sandra’s entire financial situation. On payday, she would have the feeling of “wealth” as her salary hit her account and she would spend the money on treats for her and her daughter. Then, halfway through the month, she would run out of money for groceries and fuel, and end up using her credit card for those purchases.
READ: Money Makeover | The journey to financial freedom starts here
The solution was simple. Sandra tracked her spending over a month and…