By: Natasha Archary
In the marathon of life, where are you in the financial rat race?
With 4-months of the year behind us, and the half-way mark staring us closely int he face, it may be time for an assessment of your finances.
This is what Kaya Drive touched on this Tuesday, as the reality of financial responsibilities are hitting many South Africans.
Facing numerous setbacks from Covid-19, has meant the average household savings have since been depleted. Many, no longer have a safety net of funds to fall back on should an emergency arise.
We’ve seen it with the KZN floods in April, that life can take an unexpected turn and leave people in vulnerable positions financially.
Kaya Drive listeners share where they are in the financial rat race:
The rat race applies to anyone who is caught in life’s hustle, who feel frustrated that they are not financially secure. Professionals or the average blue-collar workers find themselves striving for a better future.
The mindset that adults should push to earn well from as early as their 20s, starts young and human beings are naturally competitive.
Many fall into the trap that the more you earn, the more you have to spend and that’s how a lot of people justify bad spending habits.
Paying little mind to future planning and being stuck in a rut of repaying high loans, rent and vehicle repayments every month.
Assess your finances
1. Assess where you stand financially
Do an honest assessment of your financial situation using an online self-help tool. It may sound daunting, but other than taking a bit of time it’s an easy thing to do and will give you a perspective on where you are, help you set some goals and keep track of progress.
There are plenty of financial online tools available to help you, such as www.debtbusters.co.za/tools-and-advice/budget-calculator/.
2. Set reachable but stretch financial goals
These will depend on financial circumstances and will be different for everyone. At the same time, they should be informed by your own assessment in step 1.
For some it may be planning to pay off short-term or unsecured debt, for others it could be starting an emergency fund to cover unexpected future expenses, while those with some disposable income may consider investments as a good way to grow their money.
3. Don’t delay
If your assessment in step 1 finds that your monthly expenses exceed your income and you can’t find a way to rectify this, you may need expert help in the form of a debt counsellor. Find a reputable, registered debt counselling firm with qualified debt counsellors who will give you impartial advice and help you make the right decisions.
Debt counselling is a process regulated by the National Credit Act which allows consumers to pay off their debt over an extended period at lower interest rates. Reductions of up to 90% on interest rates for unsecured debt can be negotiated. Debt counselling helps you pay at a rate you can afford and retain your assets such as your house and car.
