Don’t save what you have left after spending every month. Spend what you have left AFTER saving! That is how you become wealthy.

The majority of South Africans go on holiday with their December salaries and if they were lucky, a Christmas Bonus. You might know what it feels like to feel poor in January.

Our Envestpro challenge to you this year is to change your life and follow our “wallet Diet” from September.

As a child, I used to be so excited for September to arrive, as I knew that all the fun started when the months with “r” returned.

Let’s utilize these “r” months until December wisely and have 4 months of saving “R”-ands before we go on holiday. I must say, I would rather give up some of my luxuries now than have to skimp during my holiday, don’t you agree?

Why follow this “Wallet Diet”?

  1. Because you know that the next salary that you receive after the 15th of December is only the 30th of January, which is 45 days away.
  2. You still have to pay your monthly accounts, home loan and groceries.
  3. January is your least favorite month because you are restricted due to cash flow.

How to start this Wallet diet:

Step 1 :  Create a budget of all the necessities that you need to fund from your income every month. Oh yes, your retirement annuity and your life insurance and short term insurance are classified as necessities.

Step 2: Once you have done your budget, you are then able to calculate how much “Rand” you have left.

Step 3: Commit to start saving 60% of your extra “Rands” in a Money Market account. If you are registered for Internet Banking, you will find the option to invest on the website of every bank. If it is too complicated, you are welcome to leave it in your bank account and refrain from using it or draw the cash and hide it in a safe place until December. This will help you to save for your spending money during the holiday season.

Step 4:  Your November salary must pay all the normal expenses and debit orders for the month, groceries included.

Step 5: When you receive your December salary and maybe a bonus, you should know how much you need to keep in your account for the January debit orders and expenses as well as one weekend of fun at least! The rest of the money, you are allowed to spend on holiday as well as your savings.

Step 6: have a budget for your Christmas gifts and stick to it. It is the thought that count and not the size or value of the gift.

I promise, when you have experienced your first financial stress free January, you will continue saving through the year for the next December holiday, and who knows, maybe you will be able to afford a holiday on an island!

Be Money Wise!