South Africa has some of the lowest savings rates in the world and with many South Africans following the payday millionaire approach, this ultimately results in them only ending up in an ever greater financial predicament.
The month of July is known as Savings Month and should serve as a reminder that there is no better time than now to scrutinize your financial affairs, says Thys van Zyl, head of Everest Wealth.
'Consumers are reeling after ten consecutive interest rate hikes and sharp increases in food prices, fuel prices, power prices and other living costs. This results in many people not even thinking about saving as they are just trying to keep their heads above water. However, it is essential to make a mind shift and get into the habit of saving.'
The first step is to examine the state of your own financial affairs in order to clearly establish how things need to change and how you are going to do it so that you can set goals and measure their progress.
'This investigation into your financial affairs will help you determine, among other things, whether you also follow the payday millionaire approach where in the days after you receive your salary you spend your money freely on all kinds of luxuries and then struggle to make ends meet until the next payday, and possibly incur further debt and therefore only end up in a bigger financial predicament every month.'
