Creating Money Savvy Kids for the future.

Ask any child what they want to be when they grow up and you will hear things like; “I want to be a doctor”, “I want to be a pilot”, “I want to travel the world” or “I want to save the whales”, but dreams cost money and if dreams cost money why are we teaching our children to live the life of their means and not live the life of their dreams?

Are you looking to start your own business, but finding that the process can be overwhelming? From sales, marketing, and operational teams to budgets and cash flow, there is quite a bit that goes into starting one’s own business.

The term “emergency fund” refers to money put away that people can use in times of financial distress. The purpose of the emergency fund is to improve financial security by creating a safety net to help cover unforeseeable, high-cost expenses which, in its absence, could have catastrophic effects on your financial situation.

If you are a working person in South Africa right now you are feeling the pinch of the 3 interest rate increases, the 7 petrol price increases, the Eskom increase of 9.61%, all your annual subscriptions have gone up the average 10%. Suddenly you have less disposable income. This tells me 1 thing. Your expenses have gone up and your income has remained the same.

If you don’t re look and re do your budget to cater for these additional expenses, you will very quickly start spending more than you earn. When you spend more than you earn you will get into debt very quickly.

You have started your first job. It’s the end of month one and you just received your first salary. I can see the look of glee on your face as you ponder on how best to spend your hard-earned cash. I see the thought bubbles “Apple watch”, “A new phone”, “New work wardrobe”. Stop!

You worked hard to earn that money, right? Why throw it away on purchases you don’t really need? You are probably thinking, “You sounds like my parents”.

We all know that life during COVID 19 is filled with countless unavoidable worries of the financial kind. Some may feel it more than others, but we all feel it non-the-less. We are losing our jobs, taking salary cuts and closing our once thriving business. Basically, we go into level 1 of survival mode when it comes to our finances due to the crunch we feel. Here are 5 Tips to get you to the next level of survival mode.

The world has been thrown off its centre due to Covid-19 and the implications thereof. Our country is in a state of emergency and lockdown has resulted in jobs being lost, salaries being cut, personal finances being destroyed and an economy that is damaged. However, despite these circumstances we still have to find a way to manage our finances, take care of our families and ourselves and move forward.

Looking back to January this year, what do you wish you had done differently? For many people it comes down to finances. They wish they had saved more, built an emergency fund or possibly invested in a mask or hand sanitizer manufacturing company. I guess that is how we will always feel as human beings. We will always look back and wish we had known better and done better. Or could we do things differently?

Did you know that 70% of income earning South African’s are in debt? And with the arrival of the Coronavirus and downfall of our economy, what then about the financial freedom of our children?

Poor financial decisions can have a long-lasting impact on individuals, their families and society. The causes of the recent financial crisis are complex, but the lack of financial literacy is certainly one of the aggravating factors leading to ill-informed decisions on home loans and credit purchases. Low levels of financial literacy have also been associated with a lower standard of living, decreased psychological and physical well-being and greater reliance on government support.

Everyone’s life is different, but many have still been impacted in similar ways because of the impact of COVID-19. 2020 was a mean teacher but the lessons were clear. In some way or another, you and your family have probably been impacted by a job loss or reduction in income. 2021 is promising a bit of the same and the potential for more job losses, pay cuts and reduction in income is prominent. I join you is shouting “this sucks!”

However, you do not have to let this situation define you. This is an opportunity to learn A LOT and as we know learning life lessons are not always pretty or easy. It is also an opportunity to become money savvy and build a financial life that is more secure for you and your loved ones. One that leaves you breathing a sigh of relief and feeling more secure and certain for the future instead of feeling run down, stressed out or worrisome.