WITH South Africa officially in the third wave of the Covid-19 pandemic, there are no easy solutions to remedy the financial fallout experienced by many individmuals, households and businesses.

JustMoney, a trusted online source of information and advice on money matters, says three key factors must be addressed.

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Work out a budget
Track the amount of money coming in, list your regular monthly bills, then all your variable expenses – those that change from month to month. Bank and credit card statements are a good place to start. Soon you will be able to determine where your money goes, where you have money left over, and where you can cut back.

Reduce your debt
Firstly, understand the difference between good and bad debt. Debt is acceptable if, for example, it takes the form of a home loan and allows you to buy a flat or house for your family. Debt is bad if it does not increase your wealth in the long term, for example spending money on the latest gadgets and fashions. If more than a third of your income is allocated to paying your debt, and you find yourself taking out loans to get through the month, you may well need debt assistance.

Save
If you found yourself saving money because of a lack of social spending opportunities during the lockdown, be warned that there will be greater temptations as more people are vaccinated and matters return to a form of normality. Entrench your new, positive habits now, such as setting up a debit order to an investment account.