Sorting out your finances too late can cost you. Reviewing your spending habits can help you get on top of your spending of money and saving.
By: Boitumelo Mmakou
There are damaging effects to holding off on your sorting out your finances, which could affect you when you want to buy a car or house. Head of Consumer Education at FNB, Eunice Sibiya says these are the three things to avoid when it comes to money:
1. Putting off bills for the last minute
Waiting for the last minute to pay your bills is not something you service providers will let you get away with. There are serious consequences, which include penalty fees, making it difficult for you to keep a good credit record.
According to Eunice, there is either interest that accrues from the day that it is late, a late payment fee, and in some cases, the service provider will simply stop the service.
2. Holding off because you do not have a plan
Have a budget that’s written out that will help you manage your money the moment your salary is in your account. Putting some of your bills on debit order, and using cell phone or internet banking can also cut down time.
3. The Tax Return Saga
“Not filing your tax return on time comes with a price and penalties. Make sure that you give yourself plenty of time to collect all the documentation you need, such as IRP5s from previous employers, tax certificates from medical aids, investments and RAs,” explains Eunice.
