START 2023 ON THE RIGHT (MONEY) FOOT

 Making budgeting a priority as you enter the New Year

- CLAIRE KLASSEN

WITH JUST a week or two left of the holiday season, we can all be tempted to overspend on traveling, entertainment, luxury gifts for our loved ones, and indulging in non-essential goods. The festive season is about spending time and celebrating with friends and family-and the best thing you can do is spend within your means, and not spend a cent that you didn't budget for.

Once you understand that money is a tool for reaching your financial aspirations in life, you will start thinking about money differently. You will start realising that money is not to be wasted, and each purchasing decision made needs to be done in a cautious manner and accounted for.

Financial wellness starts with the recognition of the bad spending habits you have and replacing those bad habits with good spending or savings habits. For instance, instead of encouraging a friend or family member to pay for everyone's meal at a restaurant when travelling, you can split the bill evenly between everyone.

Financial wellness has more to do with effective budgeting than people think. Managing your finances starts with tracking your spending. You should also aim to save three to six months' worth of expenses, so that you don't need to go into debt when emergencies arise.