Advice For Anyone Cash-Strapped And Trying To Navigate These Financially Challenging Times
Advice from experts on how to save money with housing, bond repayment, grocery and other costs can greatly help cash-strapped South African households in navigating financially challenging times.
...19/08/2024
In a challenging economic climate, staying on top of financial obligations is more critical than ever. Some necessities can feel like they are adding to the weight of financial pressures but can be transformed into strategic financial moves that can assist with future investment opportunities. The advice from industry experts also includes the importance of saving up for a rainy day and spending smartly.
Keeping up with bond repayments, a strategic financial move
Bradd Bendall, BetterBond’s Head of
Sales, emphasises the importance of South
African consumers maintaining bond repayments,
viewing it as a strategic financial move. He
advises, "Continuing to keep up with your bond
repayments is not only essential for maintaining
your credit standing but also serves as a form
of savings. Each payment you make builds equity
in your home, which you can eventually draw from
in the future, providing a financial cushion for
unforeseen expenses or investment
opportunities."
Bendall highlights that
despite the recent decision by the Monetary
Policy Committee (MPC) to hold the repo rate
steady, it is crucial for consumers to stay
committed to their bond repayments. “The MPC's
decision to keep interest rates high reflects
the current economic challenges, but there is
optimism on the horizon. The next MPC meeting in
September promises to bring a reduction in
interest rates. This potential decrease could
alleviate some financial pressure on
bondholders, making repayments more manageable.
By diligently keeping up with bond repayments
now, consumers can take advantage of lower
interest rates in the future and continue to
build their financial security,” says Bendall.
Build investments into your financial freedom plan
No matter how much you love
your job, financial freedom should be your
ultimate goal. For those unfamiliar with the
term, financial freedom can best be understood
as a state where individuals or households have
enough financial resources to cover their living
expenses without having to depend on work to
maintain their standard of living.
“Most
of us aim to have financial freedom by the time
we hit retirement age, when we need it most,”
says Kananelo Matela, Investment Consultant, 10X
Investments. “But if you can achieve it before
then, that’s even better. Suddenly, things like
company downturns and retrenchment exercises
become less of a worry. And if you feel like you
need to take a mid-career sabbatical, you can.”
Matela adds, however, that achieving
full financial freedom requires a savvy approach
to investment. “The days where one could achieve
full financial freedom through traditional
savings mechanisms are long gone,” he says.
“Today, investors must ensure that every rand
they manage to put away works as hard as
possible.”
Ultimately, Matela points
out, financial freedom shouldn’t be seen as a
pipe dream but as an attainable goal for all
working people. “As long as you’re realistic in
your planning and understand what it takes to
achieve your financial goals, financial freedom
is entirely achievable,” he says. “Whether you
reach it when you hit retirement age or even
earlier, your future self will be grateful for
the sacrifices you make today.”
Have a plan in place
Having savings for a rainy
day is so important, and as we race towards the
end of the year, we can often feel stressed
out.The important thing is to prioritise your
affairs in order to help you to the end of the
year. Having a set plan in place can make a huge
difference in managing your finances and
achieving your goals for the rest of the year.
“Being organised can help you beat a
mid-year slump,” says Keletso Mpisane, Head of
Blink by MiWay. By re-evaluating your goals and
finances and adjusting so that they are still
attainable and feasible for the rest of the
year, you’ll feel more prepared for the months
to come’’
Break up your tasks into
smaller and more manageable chunks, prioritise
them, make a to-do list, reflect, and plan. By
doing this, your goals can become realistic
again and might just give you the boost you need
to tackle the second half of the year with
vigour and renewed effort.
Pantry power: Unleash flavour and save on groceries
Radisson Blu Hotel Waterfront's Head Chef Grant Cullingworth is on a mission to banish boring meals from your kitchen. His secret weapon? Unlocking the hidden potential of everyday ingredients.
Waste not, want more! Don't toss those carrot and celery tops! Save them for a flavour bomb. Toss them into a pot with beef bones or fish heads to create an incredibly rich and nutritious soup base. Bonus: using animal bones not only adds depth of flavour, but also boosts your collagen intake and provides healthy fats, essential for a strong immune system.
Planning is power. Most of us fall victim to impulsive, "what's for dinner?" decisions. Therefore, planning your meals is a game-changer. By prepping ahead, you'll shop smarter and create meals that utilise ingredients you already have on hand.
By staying committed to your bond repayments and adopting smart savings and financial strategies, you can navigate these challenging times with a little more confidence. Each payment brings you closer to financial security and freedom. Although it may seem easier said than done, working towards implementing these practices can result in much needed financial relief in the future.