Over the past few years, we have seen a drastic increase in spending and debt in South Africa, sometimes all in the name of living a ‘soft life’; a ubiquitous phrase amongst South African millennials. The pressure from social media has made it so easy for individuals to compare their lives with others.
Even though the lockdown has taught us to live and enjoy life to the fullest, spend time with loved ones and travel; our biggest challenge is enjoying all that life has to offer and navigating the multiple economic shocks in our country including the anticipated global recession. To mitigate the impact of this financial crisis, it’s important to build a financial safety net and work towards being financially secure.
Here are three financial wellness tips you can start implementing to help you manage your finances and reduce your stress levels.
It is officially ‘silly season’, and if you’re like most people, you can potentially fall into the overspending, especially during this time of the year, but do not be like most people.
Here are 5 mistakes to avoid during the festive season
1. Avoid Impulsive spending
Come up with a budget and stick to it. From Black Friday to Christmas promotions, it’s easy to spend on things we do not need. It’s important to track all your expenses.
2. Don’t let your bonus go to waste!
Your bonus can go a long way if you have a proper plan. Split the use of the budget into various categories and allocate funds towards spoiling yourself, paying off debt as well as reinvesting
3. Update your Policies and Insurance
If any of your personal circumstances have changed in the past year or two, whether it is a change of address, divorce, or a new member of the family, consider updating your household, car insurance and accident policies frequently.
Check your credit report once or twice a year for any irregular or fraudulent activities and keep track of your debt.
5. Bonus Tip: Wedding Seasons
In love and tying the knot? Congratulations!!! Before you walk down the aisle, make sure you educate yourself about the various contracts and options available for you and what best suits your relationship and financial future.
Our journeys in life are different, it is important to start taking the necessary steps that will lead you to a healthier life, financially and mentally. The implementation of the above will help in building a healthier relationship with money, and a more positive outlook on your finances which will result in you having a healthy relationship with yourself and improved mental health.