The closer we get to payday, the less money we have at our disposal. Yet some people seem to manage just fine. Is it because they earn more?

The closer we get to payday, the less money we have at our disposal. Yet some people seem to manage just fine. Is it because they earn more?

Maybe.

But unless you’re negotiating for an increase, you’ll have to learn to budget like a pro. We offer some guidelines to help you make it from pay check to pay check, and maybe even save a little on the side.

1. Take a good look

Get an idea of the entire amount you have left at your disposal for the rest of the month. Set aside money for the essential bills that have not yet paid. Write down the number you are left with so that you can come to terms with what you’re dealing with.

Tip: Use a spreadsheet or an online budgeting tool to help you make sense of all the figures.

2. Withdraw all your cash

Go to an ATM and withdraw that cash. This will leave you with a physical impression of what you have left and thereby avoid optimistic mental calculations, assumptions and estimations. You’ll be able to see exactly how much money you’ll have for each week. It’ll be easier to pass on non-essential spending when you see the money in your purse physically diminish.  

Tip: You don’t have to carry all that money with you each day – it’s dangerous in South Africa. Take only what you need.

3. Sell it!

Still don’t have enough to make it through the week? Use online bargaining sites like OLX to sell things you don’t need. Using PriceCheck to find the least inexpensive items on your essentials list could save you a few rands too.

Tip: You don’t have to sell the kitchen sink, but if you’re honest with yourself you might find several items you never use lying around the house.

4. Budget Budget Budget

Relook your spending habits. Where did you waste money unnecessarily? Answering tough questions should propel you in the direction that helps you to be more responsible. If you know what you’re doing wrong, it’ll be easier to refrain from repeating this bad behaviour in future.

Tip: Devise a budget. It should include everything you earn and spend in a month. Set aside a little for savings or debt management too.

5. No borrowing, no lending

Now is not the time to give away money you don’t have. Lending someone else your hard earned cash gives them too much power over your financial well-being – can you guarantee they lender will pay you back? Now is not the time to spend money you don’t have. Borrowing money is the absolute last thing you should do. Living within your means will result in more money saved in the long run.

Tip: Don’t make debt for the sole purpose of settling debt. Rather contact the institutions you owe, explain your situation and negotiate different repayment terms. 

If you’re hoping to avoid this situation next January, and in the months ahead, consider asking for an increase, or moving into a more lucrative position. Careers24 is here to provide tips and advice, and hundreds of potential new roles just for you.