An unusual approach to budgeting

The Florida Regional Library entertained and taught residents during a free business workshop on Wednesday 30 July.

The librarians partnered with Mpho Mohatle and Fana Usiba, two businesspeople who represented Avocado Vision in business training on Wednesday. The programme, scheduled from 8am until 1pm, taught residents how to rethink and reorganise their budgets, how and where to invest and what financial opportunities to look out for. Mohatle presented most of the programme and had his audience in stitches with his realistic, go-getter approach about money and the way South Africans interact with it.

“Some South Africans earn R40 000 a month and are poor at the end of the month because they don’t take care of themselves and their hard-earned cash.

“You are the person who works; you make the effort, you earn the money – so pay yourself first.”

Despite being apprehensive of this unusual approach to budgeting at first, attendees soon heard that paying oneself first means to invest in one’s future before expenses.

“Before you worry about paying Piet his rent money, taking Wifey to do grocery shopping or buying Kiddie some school shoes, make sure your family is provided for in future.”

Mohatle shared valuable information on calculating expenses in a month and correcting one’s budget.

“See where you can cut off some more meat (money) for yourself and your future.”

Once people know where they can save money, Mohatle said, they can use the money on “themselves” by making a larger investment, pay more on their bond, pay off school fees or kill their debt.

“We spend a lot of money unnecessarily because we don’t think about its impact. You can cancel your cellphone contract and pay as you go, close your clothing accounts, consider medical insurance instead of medical aid, pay towards a cheaper funeral cover and get a smaller satellite TV bouquet.

“You also should audit your groceries on a month-to-month basis; do you really need that expensive coffee or special perfume or do you just need a warm cuppa and some deodorant?”