Botswana: Budgeting Tips for Seeing You Through 2020

budget 2020

Overspending during the Festive Season often leads to debt and money shortages during the first few months of the new year. This can exacerbate money issues for the rest of the year.

With our budgeting tips, you can avoid money shortages during the year and also make your next Festive Season more comfortable without going into even more debt.

1. Learn how to create a monthly budget

Learn how to draw up a reasonable budget according to your earnings and expenditure.

There are online tools and templates that can help with this. Your budget needs to be accurate and should also track your spending throughout each month.

2. Avoid your credit cards

Ideally, you should try to get rid of credit cards entirely but if you do need them, only use them as a last resort.

Credit card debt often has high interest rates. So you’ll end up spending a lot more than you need to and your debt repayments will go up.

3. Try to pay extra on your debt payments

Even a small amount added to your monthly debt repayment can reduce your repayment period by months or even years.

It also helps to reduce the overall amount of interest you pay because the interest is usually calculated monthly on the amount still owed.

4. Have a savings plan

Putting some money aside each month will help you deal with unexpected costs or months where your expenditure is higher for reasons outside of your control, such as petrol price increases. Your savings from the year can also help over the festive season.

5. Take advantage of specials throughout the year

Keep an eye out for significant specials, especially bulk non-perishable items. Black Friday, as an example, is a great time to buy Christmas gifts.

However, don’t take a special as an excuse to buy something you don’t actually need. Focus on items you’d buy anyway.

6. Pay critical bills first

Prioritise the most critical expenses in your budget when paying your bills.

You can always make the grocery budget stretch if necessary. But your landlord isn’t going to give you a discount if you’re short on the rent.

7. Be realistic about what you can afford

Even if you really want something, be realistic if you simply can’t afford it.

A seemingly harmless indulgence can create havoc with your budget and even affect subsequent months. Rather budget for it with your savings, or year-end bonus if you get one.

8. Anticipate higher spending months

Some months are more expensive than others, so incorporate this into your yearly budget.

Things like school fees or holidays, yearly medical appointments and car services can all push your expenditure up in particular months.

9. Use cash to limit spending

Handing over a credit or debit card can be too easy sometimes.

Consider drawing cash for your groceries or transport budget. You then have a physical representation of how much you’ve spent and how much you have left.

It’s harder to go over budget this way.

Short-term loans from lamna Botswana

Even stringent budgeting can’t always save you from money problems.

Unexpected bills or expenses can mess up your budget and leave you short on cash for the month. When this happens, a quick short-term loan can be a lifesaver.

Asset-based loans are short-term loans that are secured by the value of an item that you own.

This can anything from a paid off car or truck to valuable jewellery or art. These loans have a short repayment period, so they don’t become long-term crippling debt.

At lamna Botswana, we offer fast, discreet loans against the value of a wide range of assets. For more information about using an asset to secure a short-term loan, contact us on 71 388 088 or simply complete and submit our online application form.

Complete our Online Application Form