How to Create an Effective One-Page Budget

It’s never too late to achieve financial freedom. A one-page budget is the first step towards empowering yourself to manage your bank balance better. Establishing this foundation opens a whole new world of possibilities, such as a Capfin personal loan, which you can use for your own or your family’s improvement

Do you have steady control of your finances? It’s never too late to achieve financial freedom. How? You may ask. Three words: budget, budget, budget. By consistently tracking all your income against expenses, you’ll get ahead of your finances and maintain a healthy bank balance.

Have you heard about a one-page budget? It’s when you list all your income, expenses and saving goals – all on one page. You can download a budget template or simply write it in your notebook. Doing it this way gives you a much clearer picture of your finances.

It also empowers you to make informed decisions before taking out a personal loan, starting a side hustle or saving. You’ll understand the exact amount you can afford to take out and if you can afford the repayment without breaking the bank.

We’ve compiled a simple yet practical step-by-step guide and budgeting tips to help you create your own monthly one-page budget and take a leap towards financial freedom.

1. On your mark. Get Set. Write! The first thing you’ll do is list your income, such as your salary. It’s better to use your net salary as you can easily see what you are working with. Have you got any side hustles? List them, too! Make sure you capture whatever amount comes in during the month in focus.

2. Then, make a list of each expense. Start with fixed expenses such as rent, personal or car loans, phone contracts, or even a streaming service you’re subscribed to.

3. Now, write down your variable expenses – those that fluctuate every month. Examples include groceries, takeaways, transport, clothing, gifts, household supplies, and entertainment.

4. Be brutally honest. How much are you spending on subscriptions and luxuries? Use your latest three bank statements to work out the average for each category of expenses. The reality may make you uncomfortable, but it’s the best way to see where your money is going.

5. Are you saving for a rainy day? See how much you can afford to put away and write it down. Consider this goal a must-do, like your other expenses.

6. Lastly, add up all your expenses and tally them against your income. This is where you can determine how much you are left with, and make adjustments and see where you can cut back if you’re over-extending yourself or where you can save more.

Now that you’ve begun your journey towards financial freedom, it’s important to know and understand some of the most common budgeting mistakes that can set you back and impact your bank balance. Some of these are:

Now that you have a clear picture of your finances, it's time for some honest self-reflection. Ask yourself: Am I living within my means? Or have I become a victim of lifestyle creep? Not familiar with the term? In a nutshell, this is when you overspend as your income rises. It can get toxic pretty quickly: luxuries become the new must-haves, and you are in a position where you can’t save or invest in your future. With a one-page budget in place, you can get on the right path. Remember, it’s never too late to achieve financial freedom. You’ll enjoy the rewards for much longer.

Being financially secure opens up a new world with endless opportunities to improve your life and the lives of those you love. With your personal finances in the green, you can enjoy personal loans that work for you. 

From upgrading your home to up-skilling yourself with a short course, anything is possible. With repayment terms of six, 12, or 24 months depending on your risk profile, you can get a Capfin personal loan of up to R50 000 to your unique financial status. And remember, Capfin's simple application process means you can access funding quickly and easily.

For a personal loan, apply online at www.capfin.co.za, via SMS to 33005, or by visiting any PEP or Ackermans store.

Make it happen, with a Capfin loan