JOHANNESBURG – In a weak economy, managing one’s finances and making ends meet at the end of every month is a lot like completing an obstacle course. However, reviewing and adjusting your household budget once a year like the Minister of Finance does for the country, can make it a lot easier.
“In the same way that the national government takes a hard look at the state of the economy every February, and puts measures in place to strengthen it, consumers need to reassess their challenges and opportunities annually,” said Old Mutual Head of Financial Education, John Manyike.
“Families were hit hard by the increase in the price of fuel and electricity last year, as well as the VAT hike. For some people, the situation has become so desperate that they opt for a quick financial fix like a fast loan, or rely heavily on credit and store cards to simply buy groceries.”
He points out that this can be a financially crippling decision which only adds to long-term financial strain as it starts a vicious debt cycle that is very hard to get out of.
“It is more important than ever to become money smart to ensure you survive month-end Salticrax stress and start reducing your debt.