Tough times call for prioritising your spending 0 When in doubt, prioritise.
That’s the message Bank Windhoek executive Jaquiline Pack hopes to convey to Namibian consumers during the current tough time for the local economy.
After the recent uproar about international ratings agency Fitch’s downgrade pressures on the country, Pack says citizens should use the news as a message to become self-disciplined.
“We all want nice things in life, but before we want to splurge on luxuries or follow fashionable trends, we need to sit down and contemplate whether we really need it and, most of all, if we can afford it,” Pack says.
When faced with the difficult choice of having to prioritise spending, she suggests using the ‘Eisenhower prioritisation matrix’, named after former US President Dwight Eisenhower.
The method evaluates tasks into four categories based on criteria of urgency and importance.
“Determine the order for dealing with your finances according to their relative importance,” says Pack.
“Think of what is absolutely essential for you to survive on and what you can let wait for later. It all comes down to prioritisation, which is about focus on what to do with your precious earnings.”
As a rule, she suggests first focusing on important financial obligations that need to be met within a specific timeframe.
These could include housing, pension fund contributions, daily expenses and monthly contribution to a savings or investment account.
Important, but not as urgent obligations, such as vehicle maintenance or home renovations, she suggests can be scheduled or saved for, before jumping in.
Finally, whatever fails to qualify as urgent or important may be eliminated from the list entirely.
“By applying self-discipline and practising these three steps you will not only be able to plan for a secure financial future, but also reap these rewards,” Pack says.