Three Of The Biggest Mistakes South Africans Are Making With Their Money — Nigeria Today
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Three Of The Biggest Mistakes South Africans Are Making With Their Money

It’s time to start managing your money like a f*cking grown-up.

That’s the harsh truth South African author Sam Beckbessinger dishes out in her new book of a very similar name.

Refreshingly, Beckbessinger comes from a uniquely South African point of view, and is able to tell it like it is in a way like no other. You’ll learn how to create a legit budget, as well as so much more about the personal financial sector you most likely go blank at whenever it’s brought up in conversation.

However, who has time to read these days?

Fin24 is, of course, just as concerned about your money habits, and laid out a few of the most annoying mistakes South Africans make when mismanaging their finances.

While you may not lose all your money by making these financial mistakes, you could certainly lose a significant amount, and even incur penalties and fines. Eina.

So, in lieu if that, below is a list of the silly things people do to lose money, as well as solutions to avoid falling into the same trap.

Keeping money in a low interest-bearing account

Chief economist Michael Kransdorff explains that “South Africans are being fooled”:

Over 16 million of us have cash in savings accounts but, according to the latest SA Reserve Bank statistics, a large percentage (about 40%) of this money sits in accounts that offer very low – if any – interest.

While you may be enjoying the safety net that some of these accounts offer, the reality is that if you don’t switch, your money won’t grow above inflation.

The solution: Switch to a higher interest-paying account, and earn as much as 10% on your savings. Booya.

Taking on too much debt

Apparently, over half of South Africa’s credit-active consumers are over-indebted, mainly because they use one loan or credit card to pay off another. And another. And another.

The solution: Stop using credit to pay off debt. Duh:

Rather, tackle one loan at a time and pay in more than the minimum amount to get rid of the loan faster. If you don’t know how to tackle your debt, ask an accredited financial adviser or debt counsellor to help you get out of the red.

Not saving for your retirement

Think you have lots of time to save for retirement? Well, you’re wrong. It’s well known that the sooner you start saving, the less worry you will have in the future, but that small fact isn’t encouraging enough South Africans to do so.

In fact, many cash in on their pension pot when the opportunity arises.

The solution: Start saving for retirement in your 20s, or as soon as you earn an income:

Rather transfer your money into another pension instead of spending it if you switch jobs. If you take a lump sum at retirement, sit down with your financial adviser and see if you can in fact afford that expensive trip, or whether it will leave you struggling while you should be enjoying your golden years.

Got it? Good.

Of course, those are some of the more basic, obvious ways of managing your money, but people still need a decent lesson in the hows and whys so they can finally take control over their own lives.

The overall solution is to find the best financial advisor to suit your needs, and put them to work.

We suggest seeking advice from Newlands-based Consequence. Being locals, they care about their clients – and their clients’ money – and offer a variety of financial services that feed into each other, like estate planning, investment management and medical aid cover.

Contact them here to set up an introductory meeting with no fees or expectations attached, and you might be on the way to managing your money like a pro.

Or a f*cking grown-up, if you prefer it to be put that way.

[source:fin24]

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This post was syndicated from 2oceansvibe.com. Click here to read the full text on the original website.

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