Make sure your budget is more balanced than your festive diet was

We've just come out of that time of year when everyone somehow decides it’s a good time to indulge – in unhealthy food and unhealthy spending.

From the creaking Christmas table to the pile of expensive gifts you probably should have spent less on, it was definitely the season of overindulgence.

And just as we all tend to put off retirement savings, there is definitely a sense of “I’ll worry about my waistline (and my wallet) in January”.

This is not just my observation – it’s a visible effect in January when everyone is suddenly full of good, healthy intentions and rushes to the gym.

Regular gym-goers are used to the January rush, when you suddenly have to wait for the treadmill or your favourite weights machine because of long queues. It usually dies down by February as gym attendance inevitably starts to dwindle.

The trick to managing your finances is not that much different from managing your eating habits. Just as you need to implement a balanced diet (remember those plates from the 1980s that had segments for balanced meals?), you can also have a balanced approach to your finances.

💪Protein: builds and repairs tissue (muscle, skin, organs), supports immunity, makes hormones/enzymes and keeps you fuller for longer.

The financial equivalent: Your in­­come. It keeps you financially solvent, and as you earn income, it goes towards building up your savings and investments and your financial profile.

🍞Carbohydrates: Your body’s quickest, preferred fuel (especially for exercise).

The financial equivalent: This is the money that goes towards your regular expenses – the needs rather than the wants. Think expenses such as your rent or home loan, car finance and other regular debit orders.

🥑Fats: are needed for hormone production, brain health, absorbing vitamins and long-lasting satiety.

The financial equivalent: Some may disagree with me, but I believe this would be your retirement savings. Many South Africans unfortunately have very little fat in their budgets, which is the reason we are among the worst savers in the world.

🍩Sugar: This is a carbohydrate, so it’s also energy, but added sugars are “fast fuel” with little nutritional value and can spike hunger and energy swings.

The financial equivalent: This would be your discretionary spending, the money you have left over each month after you have covered your regular expenses and want to spoil yourself a little. Just as you need to watch your sugar intake in your diet, these indulgent purchases need to be limited so that they don’t take over your financial plate to your detriment.

🍶Dairy: This counts as a nutrient package – usually protein plus calcium and iodine, and often vitamin D (if fortified). It supports bones and teeth; fermented dairy can help gut health. If you don’t tolerate dairy, you can get similar benefits from alternatives.

The financial equivalent: This could be the money you put towards your investments. If you have the risk tolerance, you could invest in alternative assets such as crypto. But you know what they say: you have to weigh up the consequences of eating the ice cream if you are lactose-intolerant. Similarly, when it comes to alternative assets, you should only invest money you can afford to lose. DM

This story first appeared in our weekly DM168 newspaper, available countrywide for R35.