Dear editor,

You need to manage your money like a business by drawing up a budget. A budget is a plan of income and expenditure, that is, what income you [your household] receives and how it is spent. Budgeting is an important part of every household.

Since our needs and wants are unlimited but our resources [income] is limited, it is necessary to plan how we intend to use our limited income to get maximum satisfaction of our needs. 

If you do not budget, you may find yourself in financial difficulties. Working with a personal budget puts you in control of your money. Be realistic when drawing up your budget.

Simply, you should not spend more than what you earn. Although you may need to borrow or buy on credit at times, it must be remembered that you have to pay back loans and meet your credit obligations.

Borrowing from Paul to pay Peter will land you into further debt and you may find that you are unable to pay your creditors. If you default on your payments, you will be ‘blacklisted’ and it may be difficult for you to obtain credit in future.

In current times, it is easy to obtain loans from the various micro lending institutions, but these institutions charge very high interest.

Prof. Krishna K. Govender,

Rector: SFB