How Do You Handle Money?

Understanding the way you handle money will help curb the financial mistakes you've been making

- Bonolo Sekudu

YOU might be looking back and asking yourself about your spending habits during the year. In some instances, you probably do not know how or what you spent your money on. As the year draws to a close, the new year offers an opportunity to make better financial choices. You need to know more about what kind of relationship you have with money in order for you to achieve your financial goals and freedom.

UNDERSTAND YOUR RELATIONSHIP WITH MONEY

Eunice Sibiya, head of consumer education at FNB, says the result of your financial situation is largely dependent on your spending habits, adding that people relate to money differently, hence there are different money styles.

“There are those who spend and worry about the consequences later and those who are cautious about how and where they spend money,” she says.

If you want to change your spending habits, Eunice says it’s important to understand the type of relationship you have with money.

“How you manage your money has an impact on whether you will accomplish your financial goals or not. That’s one of the ways to avoid having a financial hangover at the start of 2018,” she says.

MONEY MANAGEMENT STYLES AND HOW TO AVOID THEM

At the core of spending habits is the lifestyle you choose to live, the ability to discipline yourself and commit to financial goals you might have not only for yourself, but for your family as well.

The avoider

These are people who avoid thinking about money and never keep track of where their money goes. They often spend more than they earn and find themselves in debt.

Solution: