Isaac Moledi

Only a small percentage of South Africans make a good living from what they earn so it makes sense for the rest to acquire lifestyle tools to help manage their earnings.

Steven Johnstone, of Providence Coaching Systems, the country's leading provider of one-on-one coaching for estate agents, says basic budgeting is often overlooked. He says it is one of the most important skills we can learn.

"Intelligent goal-setting for your business should translate into a personal financial plan that will relieve the stress that distracts your attention from your actual job."

He says many people feel overwhelmed or intimidated at the thought of drawing up a budget.

"A budget is simply understanding your expenditure, and planning it in relation to your income. It is the key to financial freedom - and you should not wait until you've cleared your credit card to compile one."

He says honesty is vital when drawing up a budget.

"Most people spend more than they think they do. A budget should not be a record of what you think you spend - it should be an honest road map of your relationship with your bank account, whether in your personal or business transactions.

One of the best ways is to work through your budget with someone who is not involved in your personal life or business.

Johnstone says: "Our coaches plan every aspect of your life. When our system comes full circle and agents start enjoying its substantial rewards, they have already put adequate financial planning methods in place, enabling them to enjoy their wealth without having to pay off accumulated debt first."