MyMoney Online

Financial damage control to sidestep those January blues….

Regular Weekend Breakfast Financial Fitness Coach Paul Roelofse shares 3 “Don’ts” which will help you to get you off to a quick and effective start mindful that its always better to put up your sails before a storm than during one.

1 – Don’t ignore the damage

Get down to the details quickly and formulate an action plan for the New Year.

Workout the damage before the statements arrive at the end of the month. The earlier you start the prepared you will be before the next salary.

You are going to need to sacrifice somewhere to make up for the over indulgences of the festive season. You will find them by creating a detailed budget and splitting your expenses into “must haves” and “nice to haves”. The area of “nice to haves” will need to be scrutinised ruthlessly and there you will find the extra cash to pay off the debt. Target the credit card first as this is probably the most expensive debt.

You need to allocate towards interest and the amount owing. You should try to payoff as much of the principal debt as possible.

2 – Don’t borrow any more

Don’t borrow more to get out of debt. It’s like trying to fill up a bath with the plug out. Put the plug in by shelving your credit card for a while and turn up the taps by squeezing out extra cash from your expenses.

Obviously this will also mean that no more “nice to have” spending for a while. You can review this only once you are back one your feet.

3 – Don’t dip into your savings and investments as a quick fix

Work out how much you can allocate overtime to getting rid of your debt. Stick with the program until you are out of the water. Set a realistic time frame realising that debt robs you of potential savings. The sooner its behind you the more you will have to compound and create wealth for your financial freedom into the future.

Ideally, you should save towards a contingency fund during this year to ensure that you don’t fall into the same trap of “catch up” in 2016.

A great challenge for the new year… whereby you will have cash for the next festive season and avoid the stresses of the next years January Blues…..

Read more from Paul Roelofse at www.investforlife.co.za


This article first appeared on 702 : Financial damage control to sidestep those January blues….


Read More
What you must learn from the Steinhoff and EOH share price collapses

What you must learn from the Steinhoff and EOH share price collapses

The Money Show’s Bruce Whitfield interviews Galileo Capital Personal Financial Advisor Warren Ingram.

3 JSE shares you should consider buying right now (by JM Busha Investment Group)

3 JSE shares you should consider buying right now (by JM Busha Investment Group)

The Money Show’s Bruce Whitfield interviews JM Busha Investment Group Managing Director Joseph Busha.

3 wealth creating shares to buy before yearend (by Anchor Capital)

3 wealth creating shares to buy before yearend (by Anchor Capital)

The Money Show’s Bruce Whitfield interviews Anchor Capital Fund Manager Tamzin Nel.

Are you missing out? Bitcoin (‘Zimbabwean dollar in reverse’) revisited…

Are you missing out? Bitcoin (‘Zimbabwean dollar in reverse’) revisited…

The Money Show’s Bruce Whitfield interviews Personal Financial Advisor Warren Ingram.

3 shares that’ll grow your wealth, if buy them now (by Ashburton Investments)

3 shares that’ll grow your wealth, if buy them now (by Ashburton Investments)

It’s stock pick time on The Money Show! Bruce Whitfield interviews Ashburton Investments Deputy CIO Nkareng Mpobane.

'The South African stock market is massively hedged against a weak rand'

'The South African stock market is massively hedged against a weak rand'

The Money Show’s Bruce Whitfield interviews Galileo Capital Personal Financial Advisor Warren Ingram.

Popular articles
'This puts pressure on Jacob Zuma to vacate office earlier'

'This puts pressure on Jacob Zuma to vacate office earlier'

The Money Show’s Bruce Whitfield interviews Daniel Silke, Political Economy Analyst at Political Futures Consultancy.

Judge Mlambo: Zuma's application amounts to abuse of judicial process

Judge Mlambo: Zuma's application amounts to abuse of judicial process

EWN Barry Bateman explains the High Court proceeding on President Zuma's application to set aside parts of Madonsela's report.

It's chicken for Joburgers and Durbanites, but what do Capetonians feast on?

It's chicken for Joburgers and Durbanites, but what do Capetonians feast on?

Stephen Grootes spoke to founder and CEO of OrderIn to find out more about South African's eating habits.

Predictably awesome new Nando's ad reminds South Africans ‘we can fix our sh$t’

Predictably awesome new Nando's ad reminds South Africans ‘we can fix our sh$t’

Watch the Guptas pack their bags and run in Nando's inspiring new advertisement.

PSG Chair Jannie Mouton opens up (kind of) about Steinhoff

PSG Chair Jannie Mouton opens up (kind of) about Steinhoff

In 2012 Steinhoff acquired 20% of wealth manager PSG, reportedly infuriating Mouton. Bruce Whitfield interviews him.

[LISTEN] Caller challenges Eusebius on land disposition

[LISTEN] Caller challenges Eusebius on land disposition

‘I need you to provide me with an answer' - John from Edenvale, Gauteng