Man­age your money

FNB gives tips to help your salary last the whole month

Weekend Witness - - Leisure -

ABOUT­5 6%­of­mid­dle­inc ome­c on­sumers­spend­all­their­monthly­in­comein­fi ve­da ys­or­le ss­aft er­r eceiv­ing­it.

This­is­ac­cord­ing­to­data­from­FNB’sRe­tail­seg­ment,­which­cat­e­gorises­mid­dle­in­come­con­sumers­as­those­who­earn­gross­monthl y­inc ome­of­R7­ 000­t oR60­000.

FNB­Re­tail­CEO­R aj­M akan­jee­said:“For­man y­c on­sumers­it’ s­not­onl y­am­at­ter­of­liv­ing­from­one­salary­pay­mentto­an­other,­the­r eal­ity­is­their­monthl ysalary­jus t­doe sn’t­las t­f or­30­da ys.”

These­con­sumers­strug­gle­with­money­man­age­ment,­with­the­short­fall­lead­ing­to­sac­ri­fices­such­as­not­hav­ing­backup­or­emer gency­sa vings­that­can­beused­t o­p ay­f or­unf ore­seen­e xpenses.

FNB­C on­sumer­CEO­Chris tophNieu­woudt­said:­“More­than­half­of­con­sumers­miss­at­least­one­debit­or­der­overa­12-month­pe­riod,­in­di­cat­ing­the­pres­sure­c on­sumers­ar e­un­der.

“For­al­most­40%­of­such­cus­tomers,debt­re­pay­ments­make­up­more­than­halftheir­take-home­pay,­which­we­con­sid­ervery­high.­T he­main­dri ver­is­the­lar genum­bers­of­mi­crolen­der­loans­and­store­cards­that­c on­sumers­t ake­up .”

FNB­has­some­in­sight s­on­mone man­age­ment: •­Bank­ef­fi­cientl y­b y­adopt­ing­an­ad­e­quate­tr ans­ac­tional­beha viour.

For­ins tance,­print­ing­b ank­s tate­ments,­skip­ping­debit­or ders­and­mak­ing­r egu­lar­or­lar ge­cash­withdr awal­sadds­t o­y our­b ank­f ees.

In­stead,­check­state­ments­on­a­bank­ing­app­or­on­line,­stick­to­rec­om­mend­ed­free­with­drawal­lim­its­or­with­draw­at­apoint­of­sale­at­a­fr ac­tion­of­the­c os­t­while­mak­ing­pur chases. y­ •­Max­imise­fr ee­pr ogrammes­such­aseBucks­R ewards.­T hese­sa vings­c ould­help­y ou­t o­s tretch­e very­r and. •­Use­the­right­credit­and­avoid­ex­pen­sive­cr edit­with­no­long -term­v alue. ­

Use­the­right­credit­for­the­right­pur­pose.

Rel­a­tively­cheaper­cr edit­such­as­an­ over­draft­or­a­cr edit­car d­is­use­ful­f or­short-term­pur­chases,­while­a­per son­al­loan­may­be­ad­e­quate­for­home­ren­o­va­tions­w hich­can­g en­er­ate­fu­tur e­v alue.­ •­Fewer­credit­in­stal­ments­will­help­youto­manag e­y our­debt­oblig ations­and­ free­up­money­for­sav­ings.­For­in­stance, ­ if­you­have­mul­ti­ple­per­sonal­loans­from­mul­ti­ple­providers,­you­need­to­con­sid­er­loan­con­sol­i­da­tion­to­help­y ou­re­pay­as­in­gle­ins tal­ment,­which­is­mor e­man­age­able­and­of­ten­af­ford­able­than­dif­fer­ent­ins tal­ments.­ •­Syn­chro­nise­your­sav­ings­to­your­salary­date­and­sched­ule­an­au­to­matic­trans­fer­to­a­cash­in­vest­ment­ac­count­on­the­day­or­day­af­ter­your­salary­gets­paid­in­toy­our­tr ans­ac­tional­ac count.

This­r emoves­the­t emp­ta­tion­of­spend­ing­the­money­if­it­was­still­avail­able­in­y our­da y- to-day­ac count.

“More than half of con­sumers miss at least one debit or­der over a 12-month pe­riod, in­di­cat­ing the pres­sure con­sumers are un­der.”

•­Have­an­emer gency­sa vings­ac count­that­can­act­as­a­buff er­or­safety­net­to­help­you­avoid­the­need­to­take­out­ad­di­tional­cr edit­f or­unf ore­seen­e xpenses.­ •­We’ve­seen­that­30% ­of­mid­dle­in­come­con­sumers­save,­save­for­emer­gen­cies­and­at­leas t­one­other­long er-ter­mgoal.­W hilst­sa ving­f or­emer gen­cies­is­cru­cial,­your­longer­term­fi­nan­cial­goalssuch­as­re­tir­ing­com­fort­ably­are­also­im­por­tant.­— ­B usi­ness­E di­tor. ­

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