Saving money is easier said than done in our current economic climate.
The national lockdown has led to job losses and pay cuts, leaving a number of South Africans struggling to make ends meet.
It’s tough out there, and the situation isn’t likely to improve anytime soon, which is why it’s more important than ever to get a handle on your financial planning, starting with your relationship with money.
Like most relationships, money comes and goes. In South Africa, we’re prone to spending more than we save, even when we can’t afford to do so.
EWN spoke to the South African Savings Institute’s Prem Govender for some insight into why we do this:
“We have developed a culture of borrowing money to satisfy our desire for acquiring things that we don’t need but desperately want. It’s become a culture of instant gratification – I want it and I want it now, even if I have to borrow to get it. Is it no wonder then that South Africans are literally drowning in debt and using the bulk of their income to service debt?”
To make things worse, more than half of the country doesn’t have a retirement plan in place, and many of those who do have started making enquiries into whether or not they can access them early as economic uncertainty takes hold.
The COVID-19 pandemic has had a devastating impact on employment across South Africa, with some companies having no other alternatives but to retrench workers to cut costs.
Some people have used up most of their savings and now, desperate to put food on their tables, they are forced to dig into their nest egg set aside for retirement.
Even if your job is currently secure, there’s a possibility that that could change in the future.
So what can you do about it?
Experts are advising that people stay calm and communicate.
You can watch Govender’s full explanation of her seven tips here:
In a nutshell, communication starts in the home, and conversations about finance need to open between couples.
The next step is changing your relationship with money, cutting down on costs wherever possible, and putting a secure financial plan in place.
Your finances may have been negatively affected by the recession and/or the lockdown but you could save money on expenses like fuel, entertainment and eating out. Other expenses, like gym memberships, could be put on hold.
If you feel overwhelmed, or don’t know where to start, Consequence Private Wealth is available to assist with advice for those who want to get their financial affairs in order.
In other words, they’ll partner with you and your family to protect and build your wealth.
You can drop them an email at email@example.com, and set the wheels in motion.
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