Take responsibility for your financial future
The current global economic outlook should be considered a wake-up call to take responsibility for your financial future. The International Monetary Fund forecasts muted growth of 2.1% for South Africa in 2015.
Recently, at a post-budget breakfast hosted by Deloitte, finance minister Nhlanhla Nene reportedly stressed that “much higher levels of economic growth” is needed to curtail South Africa’s main challenges, poverty and unemployment.
The losses to the South African economy so far for the 2015 calendar year due to load-shedding is calculated at a staggering R4.6 billion, according to Dwaine van Vuuren from PowerStocks Research in a post published in the March 2015 edition of MarketViews.
The South African consumer is under severe strain and faces challenges such as high levels of consumer debt, the rising costs of electricity and fuel, and e-tolling to name a few. The rand isn’t performing optimally and is a struggling Emerging Market currency. With labour unrest almost a given and rating agencies keeping a strict eye on South Africa’s credit rating, it’s no wonder that the ordinary South African is rethinking his or her financial position.
It’s imperative that you immediately start taking responsibility for your financial future and ultimately your financial fate. The sooner you take control of your spending and start saving for the proverbial rainy day, the better off you’ll be in future.
The number one rule is to save more than what you spend. Guard your savings jealously and resist dipping your fingers in the money box when a gorgeous pair of thigh-high boots winks at you flirtatiously. Compound interest earned on your savings will add a rosy glow to an uncertain tomorrow.
Yes, you only live once and it’s understandable that you want a semblance of a social life – meaning you want to have a cappuccino with your friends when the opportunity presents itself – without having to always think twice before you splurge money on yourself. By all means draw up a budget and allocate funds for the occasional treat but stick to said budget religiously.
Taking responsibility for your financial future means you need to be creative with your money. Invite friends over for coffee at your house. You’ll save a lot and if you can persuade someone to bring a sweet with, you may just have your cake and eat it too. Save every cent and think outside the box when it comes to having a great time with as little money as possible.
This article originally posted on http://www.free-quote-for-car-insurance.com/ and reposted here with permission.