Saving is very challenging for most South Africans. Spending money is what we all prefer to do. Too often, we spend beyond our means by using credit that we often cannot afford to repay.
Statistics released by the South African Reserve Bank (SARB) last year confirm that South Africa has one of the worst savings rates in the world. South Africans don’t save for unforeseen expenses and neglect to plan adequately (if at all) for their retirement.
7 June 2015
You work hard so it’s understandable that every now and then you deserve a treat. However, it’s important to be careful that today’s “fun time” is not detrimental to your financial situation in the long run.
Treating yourself, or having fun does not have to involve over-spending and splurging out on expensive gifts or entertainment. While you are under debt counselling you need to be more responsible and strategic about how you spend your money so that your future can be filled with financial freedom and plenty of “fun times”. Make managing your finances fun by taking control of your debt. Here are a few ideas for you to have financial fun with debt counselling:
Use some of the cash flow you have gained from your debt counselling process to save up a lump sum of money. Then use this lump sum to settle your smaller accounts. This will get you out of debt counselling faster. Settling your debt is sure to brighten up your day.
It is great that you are keeping up with your debt counselling payments every month and you will eventually be debt free. However, life still happens and you must prepare yourself for that unexpected expense you may have to pay for. You don’t want anything to cause you to not be able to make your debt counselling payment.
By setting up an emergency savings account, you reduce this risk. Put a little away every month, you will be surprised how quickly it grows. With a savings account, you will ensure that you have access to money when you need it most.
Taking control of your debt is not only about making your debt counselling payments every month. It is also about learning how to manage your finances so that once your debts are paid off, you don’t end up in the same situation again. If you plan properly, use your budget and avoid borrowing money, you have a very bright financial future ahead of you.
The most fun you will ever have is when you are debt free and in control of your finances!