How to Manage Money: Smart Tips for South African Entrepreneurs

Managing money. For some, it’s exciting. For others, it’s that thing you know you should be doing, but keep putting off until “next month.” Sound familiar?

Here’s the truth: learning how to manage money isn't about becoming a finance whizz or memorising accounting jargon. It's about building habits that give you more control, less stress, and the freedom to focus on what really matters, growing your business and your life.

And no, managing money doesn’t mean you need to be rich. In fact, money management skills are what help you build wealth over time, even if you’re starting small.

So if you're an entrepreneur, side hustler, or just someone looking to stretch every rand, you're in the right place. Let’s break down how to take charge of your finances, without feeling overwhelmed.

Want to know how to manage money? Start with a budget

If the word “budget” makes you roll your eyes, we get it. But here’s the thing, a budget isn’t there to limit you. It’s there to give you clarity. It helps you see where your money’s going, how much you really have, and what you can change to reach your goals.

If you're managing a side hustle or a full-time business, budgeting shows you the full picture: what’s coming in, what’s going out, and what’s left behind. Without that view, you're basically running blind.

So what is the trick? Make it simple. Use an app, a spreadsheet, or even a pen and paper - whatever helps you track your income and expenses in a way that makes sense to you. And don’t forget to review it regularly. Your expenses can creep up without you noticing.

Budgeting gives you power. Power to say “yes” to the right things and “no” to the money drains. And once it becomes part of your routine? That’s when things start shifting in your favour.

Cash flow is king (even more than profit)

You could be selling like hotcakes and still run into money problems. How? Because cash flow, not just profit, is what keeps your business alive day to day.

Let’s say you’ve landed a big order. You’ve paid for stock, handled delivery… but the client only pays you in 60 days. Meanwhile, you’ve got rent, data, and staff to pay. That’s a cash flow gap, and it’s one of the biggest reasons small businesses struggle.

That’s why keeping a close eye on your money-in versus money-out is non-negotiable. You don’t just need sales; you need consistent income that covers your costs when they’re due. Late payments, delayed invoices, or spending too fast can throw things off quickly.

One smart move? Use tools like the iKhokha App or iK Dashboard to track every transaction. You’ll know exactly what’s working and where the leaks are. And when you can predict your cash flow, you can make better decisions, without the panic.

Save first, spend later

Here’s a mindset shift: don’t save what’s left after spending, spend what’s left after saving.

We know, it’s easier said than done. But even putting away a small portion from every sale (say, 5–10%) makes a massive difference over time. That stash can cover slow months, emergencies, or big opportunities, like a pop-up event or bulk stock discount, when they show up unexpectedly.

A solid saving habit also means you’re not relying on credit every time something goes wrong. You’ve got your own safety net. What's even better is if you park your savings in a high-interest account, it can grow while you sleep.

So next time you have a great sales day or close a big deal, celebrate by saving a chunk. It’s your way of investing in your business’s future and your peace of mind.

Be smart with credit (it’s a tool. Not free money)

Used wisely, credit can help you manage cash flow, invest in equipment, or expand your business. But if it’s unmanaged, it can spiral quickly.

The golden rule? Don’t spend money you don’t have a plan to repay. Credit isn’t extra money, it’s borrowed money with a cost. And the longer you take to pay it back, the more it eats into your profits through interest.

A good rule of thumb: pay off your balance in full each month where possible. Keep your credit use below 30% of your available limit. And always make payments on time to protect your credit score.

Speaking of which, your credit score matters more than most people realise. It affects whether you get approved for loans, what interest you’ll pay, and how easily you can grow when opportunity knocks.

Need business funding that works for your cash flow? iKhokha merchants can apply for iK Cash Advance, funding based on your actual sales, no paperwork or stress.

Know where every rand goes

If you’re managing your business by gut feel, it’s time for a change. It’s not enough to “think” you're making money. You need to know.

Tracking your income and expenses helps you:

Understand what’s working
Spot unnecessary spending
Prepare for tax season
Make confident, informed decisions

And it doesn’t have to be a mission. With iKhokha, every card payment is logged automatically. You can view sales reports, download statements, and get daily insights right from your phone.

When you track what you earn and spend consistently, you don’t just avoid financial surprises, you start noticing patterns. That’s where growth starts.

Trim the fat: cut unused costs

Business tools are great, until you realise you're paying monthly for things you never use.

Maybe it’s a fancy invoicing tool you’ve only used once, or five website domains for businesses you haven’t started yet. It happens to all of us.

Twice a year, take a hard look at your subscriptions, services, and tools. Ask: Is this still useful? Is there a cheaper or free version? Cancel what doesn’t serve your goals.

That extra few hundred bucks per month could go into marketing, stock, or savings. Cutting the fat keeps your business lean, agile, and profitable.

Understand Tax (before it understands you)

Tax might feel like a headache, but managing it well can save you money and serious trouble.

First step: make sure your business is correctly registered with CIPC and SARS. Then, keep track of every invoice and expense so you’re not scrambling come tax time. If you’re VAT-registered, stay on top of your filing dates.

Not confident handling it yourself? That’s okay. A bookkeeper or tax pro might cost you upfront but can save you thousands (and keep you compliant) down the line.

Also consider tax-free savings tools - like a Tax-Free Savings Account (TFSA) or retirement products. These let you grow your money without paying tax on the interest or investment returns.

Managing your tax smartly is part of managing your money smartly. Don’t leave it until it’s too late.

Add another stream

One of the best ways to improve your finances is to increase your income. But that doesn’t mean taking on a second job or burning out. Sometimes, the answer is adding a smart side hustle - using tools you already have.

iKhokha makes it easy:

With iK Prepaid, you can sell airtime, electricity, and data straight from your card machine or phone
Use iK Tap on Phone to accept card payments on the go - no extra device needed
Share iK Pay Links to get paid instantly, even if your customer isn’t nearby

These are low-effort, high-impact ways to grow your income and offer more value to your customers.

Money management is a habit, not a destination

Managing money isn’t a once-off thing. It’s a mindset. A skill. A daily practice.

And like anything else, the more you do it, the easier it gets. The more in control you feel. The less stress you carry. The more confident you become in running your business, building wealth, and planning ahead.

Start small. Track your sales. Save a bit. Cut waste. Use credit with care. And most importantly, keep learning. Because the better you manage your money, the more your money will work for you.

Want to take control of your business finances? Start with the tools that help you stay on top of your money, boost your cash flow, and grow your hustle. Download the iKhokha App today and make every cent count.