USING A BUDGET TO HELP YOU SAVE for YOUR emergency fund

A spending diary is the best way to find out exactly where you are spending (and squandering) your money.

The results may be surprising. At a glance, you will see where you are spending money that you could be saving. For example, take lunch to work instead of buying a sandwich every day.

You will need to know what you spend before you can budget.

Creating a budget is a practical way to control your spending and to save money every month.

Once you have an idea of what you spend in a month, you can begin to organise your expenses into a workable, realistic budget.

• List your fixed monthly expenses that you must pay first and in full.
• Remember to include other expenses that occur regularly but maybe not every month.
• Then look for any unnecessary expenses and ways to save money. The money that you save (even small amounts at a time) can all add up to create your emergency fund. Remember, every rand helps!