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The Importance of a household budget

Blog written for Nannies In Training, we thought you might find this useful too


It happens so quickly for households to end up spending more money than what they are earning.

By drawing up a simple budget (see example below) and reviewing it every month, you can guard yourself from falling into this trap:

  1. Show all your income (nett)
  2. Start by making a list of ALL expected expenses (including small items that will be needed during the month)
  3. Divide the cash amount left over, by 4.5 – this will be your weekly cash available for any unforeseen costs, day-to-day groceries not budgeted, etc (ie if you have R3,600 left over after deducting all expenses, your weekly cash available will be R800
  4. Once you receive your salaries/income at month end, start making your payments
  5. As and when a payment is made or a debit order has gone through, highlight the item on your budget as paid. This way you can make sure that all expenses have been paid.
  6. Draw only the amount of cash available per week (calculated in 3 above) and try your utmost best to only use this money for the week.

Ways to save money:

  1. Live within your means
  2. Have a piggy bank where all small change can be collected in
  3. Second hand shopping
  4. Limit your expenses
  5. Don’t pay unnecessary fees
  6. Smart shopping – use a shopping list and try to stick to it
  7. Credit cards with rewards