With the rising cost of living, budgeting has become a cornerstone of financial stability. Experts highlight that creating a realistic monthly budget helps track spending, avoid unnecessary debt, and ensure savings goals are met. In South Africa, where essentials like food, fuel, and electricity continue to rise, knowing exactly where your money goes is more important than ever.
A practical method many financial planners recommend is the 50/30/20 rule: allocate 50% of income to needs (housing, groceries, transport), 30% to wants (entertainment, shopping), and 20% to savings or debt repayment. While the percentages may need adjusting depending on personal circumstances, the principle encourages balance and discipline.
Budgeting apps and simple spreadsheets can help visualise spending patterns and identify leaks. Small adjustments—like shopping smartly, buying in bulk, or cutting impulse purchases—can free up more money for savings or emergencies. By sticking to a plan, households not only survive financial pressure but also create space for future goals such as education, travel, or investment.