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 Sarah van der Spuy from Accumen Fiancial Planning is our very own money guru! This week she gives us the lowdown on how to suss your finances, once and for all...
When we think about detoxing, we think about getting rid of all the toxins and bad things in our system.
We know that the small sacrifices and detoxing process will be extremely difficult in the beginning, but we also know that once everything has been cleared, we’ll have optimum health to look forward to.
 It’s exactly the same with your finances…by detoxing your financial position; you create a plan to eliminate all the aspects which are keeping you from achieving optimum financial health in the form of financial freedom. Debt is effectively like wearing a ball and chain around your ankle. It prevents you from experiencing the freedom of choice, because you are tied down by regular repayments and other financial obligations.  We are living in a society which makes it very easy to obtain credit and purchase extravagantly. At first, it is very exciting, but before long, we feel ourselves drowning in that pool of debt. If you are currently in that pool of debt, don’t feel despondent. I believe that anyone can detoxify their financial position by eliminating all their debt and enjoy a life of financial freedom. It takes a conscious decision to rid your life of debt and to formulate a plan of attack. Take on the challenge – live by these 6 golden rules to avoid debt and start experiencing the freedom of no longer being tied down by debt repayments!
1: Don’t borrow to your limits
Lenders are often very eager to lend you the maximum that you can afford. Work out how much you can borrow comfortably, remembering to take into consideration any interest rate rise and unexpected costs.  2: Prepare and follow your budgetTake the time to create a budget. Remember to include all fixed costs and unexpected costs. Give yourself a bit of a buffer, so that your budget is not too strict and the first obstacle which presents itself throws you off course. The key thing with creating a budget is to use it. If you have trouble motivating your partner and children to stick to the household budget, add incentives to reward them. Get them involved in your money plan, so that they know what you are all working towards.
3: Live within your means
Living like a king on a pauper’s income is a sure recipe for disaster! Determine the lifestyle that you can afford. By doing this, you will save yourself from the pitfalls of debt and live a much happier and stress free life.
 4: Don’t keep up with the JonesesThis is an age old warning. Just because your friends or family members have the latest luxuries, doesn’t mean that you need them too. If you cannot afford it, then don’t buy it. 5: Cut up the Credit Card
Or put it in a place where it is hard to get to. This plastic monster is a terrible temptation when you are doing so well at trying to stay out of debt. It’s too easy to fall back on easy credit when you are short on funds. 6: Cash is King Adopt the attitude that cash is king. Start saving towards life’s luxuries and pay cash for them. Sarah van der Spuy
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