STOKVEL FEATURE
R U O Y F O T S O M MAKE THE T U O Y A P L E V K O ST
e
is the tim and traditionally this s, ek we w fe a st ju in e end of the year ur cash? Believe it or not, it’s th their members. What will you do with yo t to when stokvels pay ou
Be wise: budget Most of us tend to start spending the money before it is even in our account. This can lead to bad spending habits and get us into debt. Make sure you know the state of your financial affairs by 24
www.spotongmag.co.za
creating a budget to keep tabs on your expenditure and prevent any impulse buys. Plan your spending, so you know where your money is going.
Pay off debt Don’t put the money paid out by your stokvel into a savings account, even though this sounds like a wise plan. If you have any debt on an account, credit card, home loan or car, it is in your best interests to pay these off as soon as you can. Any credit provider will charge interest on the money you have loaned for a purchase, and this interest will continue to add to the amount you owe.
By paying off the debt you have, you will save on the interest being added to the debt monthly. Paying off what you owe ahead of the scheduled payments will also improve your credit score. Your debt will cost you more on a monthly basis than the interest earned if keeping the money in a savings account. Start by paying off the debt with the highest interest rate first, or the account you are closest to paying off.
Invest in your retirement Very few South Africans have made adequate provision for their retirement, with many relying on their children
Image: Shutterstock
O
ften, stokvel payouts are spent on food, Christmas gifts, clothing and furniture. But instead of seeing this money as an opportunity to spend more on Christmas gifts or splurge on unnecessary items, consider it an opportunity for wealth creation. What is the best way to utilise this money?
