Prior to making the decision of borrowing money, it is important to first decide not to buy the things that we want.

A question to put things into perspective is – “do I really need this?”. For expenses that are not mandatory nor essential it is a good habit to save for them, creating short- and long-term goals and saving until one has enough money, instead of borrowing.

A reason to borrow money is if it would take a long time to save up enough money to buy the item needed, and it is required straight away. However, if that is the case, one should ensure you have enough future income to pay back the debts. A Debt is an amount of money borrowed by an individual as a method of making large purchases that they could not afford under normal circumstances, and you need to have enough income to pay it back.

Income is money received and it includes money coming in from all sources, both earned and unearned.

Value For Money

A big concern for most types of spending is getting value for money. This does not always mean getting something at the cheapest price, the cheapest item might lead to a ‘false economy’. Value for money is defined as the most advantageous combination of cost, quality and sustainability to meet your requirements.

Money and Currencies

The meaning of money:

Financial Planning and Informed Choices

Medium- and long-term financial planning is done because people want to achieve their aspirations and to finance life events. Examples of planned events include the following: