MZANSI is sure to have a hot summer and we have already started feeling happy and spending money.
Este Ochse, product specialist for wealth and investments at FNB, said while there’s nothing wrong with enjoying ourselves, people need to make sure they don’t waste cash before the end of the year.
“Spring is the start of the festive season that lasts until Christmas and year’s end. But it is also the time where many spend a bit too freely and this can place your financial security in trouble.”
Yesterday’s fuel price increase is making the current recession worse. A recession happens when less money is spent on the economy and paying off debt is a big part of the recession problem.
Data show that household spending has dropped and less is being spent on clothing, transport and recreation.
“Avoid the credit temptation because paying back debt does not improve Mzansi’s current economic troubles.
“The more debt people must pay off, the less money is spent on the economy.”
Tips to spend wisely
Picnics: It’s more affordable to eat packed food you cooked in your kitchen than buy meals in a restaurant for the whole family.
DVD rental: Renting DVDs costs less than buying cinema seats for an entire family. You can also enjoy the show in the comfort of your house.
Recycling wardrobes: With some experimentation, you can recycle your wardrobe to last another season. Swop clothes with your friends and buy from used clothes stores.
Gym at the house:Keep your gym membership but trim off the extras on your contract.
Organise a neighbourhood jogging club or make some simple weights out of old paint cans, a steel pipe and cement to do your lifts.
