JOHANNESBURG – SOUTH Africans have been urged to spend their money wisely following economic pressures, rising inflation and higher costs of servicing.
First National Bank (FNB) Chief Executive responsible for Savings, Investments and Fiduciary, Lezanne Human, said the widening debt would continue to erode the purchasing power of consumers while on the other hand pushing an already vulnerable consumer towards the edge.
“It’s particularly important, especially when times are tough, that South Africans look at building up cash reserves, so that when an unexpected expense arises there are savings available to dip into.
“Having a buffer in place will alleviate the need to borrow more and ultimately assist in breaking the debt cycle,” Human said.
She said daily living expenses were ballooning arguing a positive measure would require stepping back to review individuals’ financial position.
Human urged customers to draw up a comprehensive budget which included income, draw budget about what they owed and their expense as a way of saving.
“Not only do the returns increase on the same capital invested but if those returns are re-invested along with the capital, the compound interest increases significantly,” Human said.
She said her financial institution would offer a wide range of cash savings and investment accounts aimed at benefiting customers from higher interest rates as well as capital and quoted returns fully guaranteed.
She said this would avoid the risk of losing customers’ hard earned money in the face of economic meltdown.
– Guardian Business