Hold on tight and enjoy a bumpy ride

Given what financial experts and analysts predict as we enter the second month of this new year, we could be flying through some very turbulent times in the next 10 months or so.

The sign of what is in store for all of us is the recent announcement of the latest hike in petrol prices. This could see consumers being thrown into the deep end as they are suddenly burdened with an even worse economic scenario that could see food prices climb even further and make life really rough for all.

Financial analysts predict that as prices of about every commodity spiral through the economic roof and job opportunities remain an unpredictable certainty, life for many households could get tougher and reach a breaking point that could send the financial situation of many families spinning out of control.

Without a doubt, life as we have always known it is poised to change as more people, who are currently employed, face job cuts as many companies down-size. This will leave more people without earnings to sustain their families and loved ones.

It is believed load-shedding, which had a greater impact on many companies and ordinary households, is going to be the biggest game changer in the lives of many South Africans and their families.

Everywhere people gather, whether it is at the municipal offices to pay for their rates and taxes or in a queue at the local supermarket or at the clinic, the most discussed and shared common topic is about the tough life they face as consumers. The pinch of high prices is shared and felt by everyone, especially the working class.

Not only do these topics seem to frustrate and anger consumers, but many also become emotional as their eyes well with tears as they relate their plight to each other.

The unemployed seem to be heavily burdened by the prospects of an uncertain future without food to feed their families. Those still clinging to their jobs are even more worried about whether they will be able to hold to their uncertain salaries with each passing pay-day cheque.

Life, as many of us have known it, has become a daily emotional battle as thousands of families lie awake each night worrying about what the next day will bring.

The emotional stress and anxiety that brings to thousands of households and families are enough to warrant a free medical check-up for every South African regardless of age, colour, creed or social standing.

Experts warn that getting into an adverse economic climate leads to stress and anxiety, which could have an impact on your physical and mental health.

We are urged to work on re-establishing a positive relationship with our finances which could lead to financial freedom and improved mental and physical wellness.

Those still hanging on to their jobs are also urged to maintain a healthy relationship with their money which means ‘understanding how money works and how to best manage it’.

This means using your money to help maintain good health, reduce stress (no more micro-lenders and loan sharks) and invest in things that will support you long-term, including financial education.

Some of the tips from financial experts are:

• Set financial goals.

Decide what you want to achieve financially and set specific, measurable goals to reach them. This could include saving for a down payment on a house, paying off credit card debt, or building an emergency fund.

• Create a budget.

Knowing where your money is going each month is key to staying on top of your finances. Create a budget that includes all your income and expenses and stick to it.

• Make saving a priority.

Set aside money each month for your financial goals and make it a non-negotiable part of your budget. This could be as simple as putting a percentage of each paycheck into a savings account.

• Take advantage of early access to earned wages.

Companies like Paymenow offer employees the option to access their already-earned wages before their next paycheck. This can help you avoid the stress and financial burden of unexpected expenses, help you stay on top of your budget and ensure that you don’t get into unnecessary debt.

• Be mindful of your spending habits.

Pay attention to how you spend your money and make changes as needed. This could mean cutting back on unnecessary expenses or finding ways to save money on the things you need.

• Educate yourself.

Stay informed about your finances and take advantage of the resources available to you. From financial literacy classes to online resources, there are many ways to learn more about personal finance and make informed decisions.

• If you’re an employer, take the time to listen to your employees and understand their financial situations. There are services, such as earned-wage access that can easily alleviate many financial stresses. These services can create enhanced financial security and literacy amongst employees and can lead to complementary business benefits such as increased productivity and reduced absenteeism.

Such advice, however, means absolutely nothing to the poor, the needy and the unemployed with no means of income who have to rely on their wits for survival during these hard, difficult and unpredictable times.