MZANSI people have been hit hard in 2023 with the multiple interest rate hikes, making every penny count.
To help tackle the challenging times, a savings media roundtable was held at the Marc in Sandton, Joburg on Thursday, 31 August.
The event was hosted by Ayanda Allie, who spoke about the psychology of money and the current state of Mzansi's economy.
The panel highlighted that budgeting requires a person to be disciplined with money, adding that when it comes to money personalities, there are spenders and savers.
“Spenders are used to spending and they get validation from spending and gifting people. But normally when you go deeper, you find out that they don't have self-esteem and feel that they will be loved, validated and respected if they look like they are the big boss,” the panel highlighted.
Metropolitan chief marketing officer Tlalane Ntuli told Daily Sun that it's important to save because as consumers, we have different needs. At some point, we can't afford those needs, so it's important to have a plan around the needs.
While there's this wrong belief that when people don’t pay their debts for three years and ignore calls from the creditors the debt will disappear, Tlalane said that debt plays a role in someone's financial portfolio and it's important to pay it.
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She said that the challenge with debt is that the more you do not service it, the more expensive debt becomes.
“The lower your credit score is, the higher your interest rate that the banks and financial services will charge you when you come back to borrow more money,” she said.
Ayanda said that there’s a misconception that low-income earners don’t need financial advice, which is not true.
Providing tips for saving, Mashudu Lavhengwa said: "People need to be disciplined with their money to change the narrative on spending money and consumer financial knowledge.
“Budget – be clear about your budget, have things you can’t compromise. It helps train your mind. Your budget is your monthly vision.”
Nozipho Mbere said that she is very cautious of the interest rates and fears taking out debt.
