Wikus says according to a survey the company has done in the beginning of this year, 76% participants save less than 5% of their income.
What can we do? Wikus says the easiest way is to build up a savings buffer – if you save you should be able to weather the storm. “One of the biggest pitfalls of debt is the fact that most people live outside their financial means. You can begin by teaching your children to set up a budget,” he adds. Demonstrate how to allocate money towards things you owe (such as bills and living expenses) and how much money is left for saving.
Expenses to cut back? DStv, eating out, smoke less, be honest and hard on yourself.
When you stop at the shop to buy bread and milk, you more than usual come home with two packages. Stick to your shopping list.
Listen to the AlgoaFM interview below.