Wealth Building Tips to Financial Security
Most South Africans are deeply in debt and consequently unable to save. A good way to begin saving is to pay off your debt as quickly as possible – especially credit card debt where you pay high interest rates. If you are unable to save it probably means that you are living beyond your means. This might require a review of your lifestyle and expenditure. And that requires learning how to budget. Financial wellbeing is significantly enhanced by budgeting and practicing financial discipline. And above all, build some savings into your budgeting. Developing a financial nest egg builds a sense of financial confidence.
Savings: Planning for the future is a topic covered when you log onto the MEMBER PORTAL and click on the ‘Financial Wellness’ tab.
Think carefully about why you want to borrow money. If you are taking a loan to fund your future growth and security, like paying for education, or purchasing a home, this is a wise investment. If you are taking a loan to purchase a status symbol, like an expensive car that will depreciate anyway, and this puts you under financial pressure, this is not a wise investment. However if you borrow to fund a well-deserved holiday in order to genuinely recuperate and rejuvenate – this still makes sense. Financial wellness is knowing how to borrow with appropriate caution.
Get your free credit score by logging onto the MEMBER PORTAL and scroll down and click ‘Credit Assist’.
Learning how to spend wisely?
Most South African spend their heard-earned money on food and accommodation. That’s pretty normal. But many South Africans also spend wastefully. Statistics showed that with the institution of various government grants for members of the indigent population liquor sales jumped proportionately. The psychologist Abraham Maslow identified normal human needs that progressed from the biological, to the psychological, to the spiritual. So it is natural for us to spend our income on satisfying these needs. He saw human needs progressing as follows: Survival (food and shelter), Security (keeping ourselves safe – including insurance), Fellowship (church, sports, social costs), Self-esteem (fashionable clothing, status symbols such as motor vehicles) and Self-actualisation (education and self-development). So a simple measure to evaluate how we spend our hard-earned money is this: Are the goods we invest in genuinely life-enriching or are they driven by the perceived need for status? Are the services we buy genuinely life-securing and life-enriching (recreational in the true sense) or are they fickle, like indulging in cheap entertainment – hanging around bars, etc.
To read a beginners guide to building wealth click here: https://www.scc.virginia.gov/srf/cons/files/BuildWealth.pdf
Getting help when you are financially stressed:
Financial problems can be very distracting – when our attention is so exclusively focused on worrying to get through the month in order to get the salary to pay our bills it’s hard to pay attention to the quality of our work. That distraction can lower our performance and put us at further risk. Financial advice and guidance is available to help us formulate a plan. And once we have a plan we automatically feel better and can focus on the job. If you are having financial difficulties seek help. Help is available when you call 082 2BEWELL OR 0800 229355 and receive professional advice.