The Struggle begins: Balance vs Available Balance

As we head into the festive season the temptations to “just swipe one more time” are at their peak. It’s important to understand one thing your bank will never warn you about: the difference between your Balance and your Available Balance is real.

Your Balance is the money you technically have in your account. Think of it as that friend who always promises to help you move house but on the day suddenly becomes “unreachable”. Your Available Balance, on the other hand, is the money you can actually use. This is after the bank removes all the little deductions hiding in the background such as pending payments, debit orders that haven’t run yet, that mysterious R3.50 bank charge that appears every month like a ghost.

This festive, don’t let the “Balance” fool you into thinking you’re richer than you actually are. Many people have entered January drinking warm water, eating dry bread and resorting to an annual fast because they trusted the wrong number.

Spending Tips

• Set a budget: “I’ll see as I go” is not a budget.
• Track your spending: Don’t wait for the young lady to scream “Authorize” at the cash till.
• Use cash for some purchases: When the money is finished, it’s finished – no surprise swipes.
• Have a January survival fund.
• Beware of ‘free’ things: Nothing is free. Not even free WiFi … Becasue let’s be honest, you’ll end up buying food to feel less awkward sitting there for 3 hours.

ISEN Business Advisory regularly assists individuals and SMEs in navigating their tax, compliance and financial reporting matters. For guidance or outsourced finance services, contact us at admin@isenadvisory.co.za.