Create Wealth By Staying Out Of Debt
This article which Netwerk24 published recently on behalf of DebtSafe, contains information about a survey done by DebtSafe earlier this year. (The stats are in the article when you click on the link below)
The average South African consumer doesn’t have enough money to cover all their monthly expenses. DebtSafe warns people to cut luxury items out of their expenses – this includes things such as DSTV, gym subscriptions etc – in order for them to pay off bad debt faster.
How do people get to a stage where they have enough cash to actually start investing and accumulate wealth? If you are over-indebted, how do you get rid of that debt burden to enable you to start investing?
The first step would be to close your spending and lifestyle circle. In short, this means capping your life style. An example would be not to upgrade to the latest and greatest vehicle every two years. Pay off your car for a change and try to eliminate the monthly vehicle instalments. Gradually you will start paying off all your debts, and experience what it is to be debt free. Make a commitment not to use credit to buy things, but rather plan and save for a cash purchase.