by Kathryn Main
We have been through a tough two years emotionally and financially after the global epidemic that had us all scared and behind closed doors. In the months that followed, South Africa was hit with flooding, riots and an ever increasing electricity crisis. Throw in the war that started in 2021 and you will find a large number of working class people struggling to make it through each month.
In 2022 alone we had 8 petrol price increases, 3 interest rate hikes, a huge rise on food prices and our annual 10% price increase on our monthly expenses. I read a study toward the end of 2022 that said that 71% of income earning adults in South Africa are relying on credit and store cards to make it through the month. They are using debt to buy basic items like food and toiletries. With the increase in the interest rate if you are a typical South African working class family, you have a house that is bonded, a car or cars that you took out a loan for, a credit card or two, some store cards and daily expenses. Just your debt alone would have gone up a few thousand Rand each month. So how do you survive on a fixed income when the cost of living keeps rising? Most people instead of cutting back or making changes go for the easier solution like buying on credit.
When I see how retailers and banks advertise debt is makes me sick to my stomach. Look at any advert trying to sell you a store card. There are young people smiling, happy, having the time of their life. Debt will not make you happy, it will make you poor and leave you feeling stressed out and in a high state of anxiety. The retainer sells you a fantasy of freedom when in fact they are condemning you to a life of debt. When you can’t pay them back they are relentless in trying to get their money back.
What really grates on my last nerve is the freebie they offer you. So if you successfully sign up for a store card they will reward you with R1000 worth of free vouchers or spend R1000 and get R300 off or some kind of hook to entice you to sign up. This marketing campaign costs this company millions to produce as these big retailers only have the best advertising agencies working on their brands. I worked in advertising and know how big these retailers marketing budgets are
So they spend millions trying to convince the youth to get into debt. How is that logical. Surely there is a better way for them to spend millions of Rands enticing the youth?
Instead of getting into debt why not try and increase your income? Have you thought about starting a side hustle or have a great talent or business idea? Say no to debt and instead sign up for our Money Savvy Entrepreneur programme. Money Savvy Entrepreneur takes place over 12-months, and is designed to help entrepreneurs turn their side hustles and business ideas into fully-fledged, sustainable sources of income. Our step-by-step Programme helps you work through all of your business’ verticals to ensure that you achieve the success you’re after, enabling you to live the life of your dreams. All you need is an idea – we’ll assist you with everything else.
The journey to financial freedom is a long one, but it is attainable with continual perseverance, innovation and hard work. Taking the first step toward becoming your own boss can be incredibly intimidating and stressful, and it seems like an overwhelming prospect to many people. This puts them off starting their own business, as they perceive themselves unfit for pursuing such ventures. What people either forget or don’t realise is that with the right mindset and guidance, becoming a successful entrepreneur is not only possible, it is one of the most rewarding achievements you can experience.
Even if your financial situation is good right now, there's always more to learn about how to become financially secure. The reality is that one source of income is no longer a viable solution for securing a financial future. Fortunately, making money is a skill that can be developed. A tried and tested Programme – coupled with an idea and determination to succeed – is all you need.
The time is now, if not now? When?
Join the Money Savvy Revolution today!
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If you are looking for words to describe Kathryn Main, CEO the Money Savvy brands, quirky, determined, visionary and masterful are just some that spring to mind. Kathryn is an author and award winning businesswoman and has won awards for her advertising agency as well as Money Savvy Kids. Kathryn has a passion to change the face of education on the African continent through financial literacy education and training. The Money Savvy brands are revolutionizing the way financial knowledge is disseminated to younger generations of South Africans. Money Savvy Kids + Teens promotes in youth the skills, knowledge attitudes and behaviors required to be financially independent.
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