When we’re sky-high in debt, we’re constantly panicking about everyday expenses, unexpected bills, and the future. In contrast, when we’re in control of our money and know how much we can spend, we feel more secure and less stressed. This sets us free to enjoy our families, our lives, and our money.

If you’re struggling to keep your head above water, or are overwhelmed with debt, please contact the NMG SmartAssist Programme for confidential financial coaching.

Steps to financial freedom

Setting a family budget is the first step in taking charge and avoiding debt. It gives you the freedom to:

• Put money aside for unforeseen expenses e.g. car repairs or medical shortfalls.
• Spend your money wisely on necessary expenses (your needs) e.g. food, schooling, accommodation etc.
• Save money for the things you like but can live without (your wants) e.g. a holiday.
• Stop accidental overspending.

Examine past salary statements, bills, and bank statements to understand your usual earning and spending habits.

• List what you earn, spend, and owe.
• Pay off any high-interest credit cards or other loans first.
• Establish an automatic debit order to a separate savings account. Before saving for your wants, build up money for financial emergencies.

Choose communication

Honest communication with your family plays an important role in managing money and avoiding conflict. Involving them in planning and budgeting can make it easier to achieve financial goals together.

For example, you can get the family to brainstorm how to spend less on certain items, develop better savings practices, and reward the best suggestions. Or, decide together on a savings goal, how much you need, and set a deadline. A vision board can remind the family to stay on track.

Smaller, short-term goals like saving to do something fun every second month can help keep everyone motivated to stay on budget.

Choose appreciation

Learn how to savour, or appreciate what you have now, instead of trying to be happy by overspending on more things than you or your family need. Instil this practice in your children from a young age, and work on creating enjoyable experiences that don’t cost the earth, or are free.

Reach out to the NMG SmartAssist Programme for confidential financial coaching.