by | Mar 1, 2023

Where did the rainbow go?

The average South-African household is under immense pressure.  No doubt you have read the headlines, and this may have created a bead of sweat on your forehead.

Let’s take the chicken and not the egg: Our local grocer has had to increase chicken pricing by 23% in the last 4 months. A repeat of last year, just something else to blame- Ukraine’s fault last year, now the culprit is ESKOM.

The manufacturer produces less chicken or the same volume at a higher input cost, resulting in increased pricing. The wholesaler or grocers only option is to pass on the golden chicken. The end-user option is to eat less chicken.  Sure.

What is your action plan? Start with your own budget.

I still run into many investors who do not have an actual budget, it is the first step to financial freedom. It will prove painful at first but it should result in more control over your personal finance.

Contact your RWM Wealth Manager for a budget template and start scrutinizing it.

The reality is that many South- Africans live on a reverse 80/20 no budget-budget rule…with debt repayments at 80% + and needs and wants at 20% of expenditure. Only because of two factors:

  • I thought of my Wants as Needs
  • And actual inflation surpassed earnings increases over the past 3 years, year on year.

Not a healthy combination. Tighten that belt. The below IOL article is short and focused with easy principles that anyone could follow:

IOL article by Dhivana Rajgopaul, Multimedia Journalist, Business Reporter

“Now that the annual budget is over it’s time to focus on your household budgetIn the attached article journalist “