And because of the year-end hype and excitement, the festive season provides the perfect opportunity to spend money that you do not have.
The decline meant consumers slipped from “mildly exposed” to risks in cash flow position in the first quarter of the year to “very exposed” in the second quarter.
Whereas poor people in the UK spend about 90% of their income and the more affluent use about 60% of their income, poor South Africans spend 122% of their income while the rich spend 97% of their income.
Financial independence is possible if you can live below your means. Although that sounds discouraging in an aspirant consumer economy, what you save is what you keep. You’ll have plenty of reasons to celebrate if you can reach that goal.
The same study shows that 76 per cent of us feel happier about life in general when we feel good about our finances, indicating that many people would benefit from the therapeutic influence of a Money Mate.
“Dealing with unmanageable debt is incredibly stressful so it is not surprising that so many are kept awake worrying about their debts.”
35 per cent of divorced respondents nominated financial stress as the key issue in prompting the divorce. A “failure to communicate” is typically what causes marital money madness, because most people treat money as a taboo topic.
Usually some form of psychological counselling is needed to deal with the underlying causes of the overspending. In addition, the person needs to seek sound financial counselling.
Your wedding day should be one of the happiest of your life – but if debt and bills are looming thanks to your excessive wedding, it puts a damper on your marriage. So be sensible, and compromise on a dream day in order to have a dream life.
The most serious problem is the extent of consumer indebtedness. There can be little doubt that South Africans have been on a credit binge over the last few years.