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STICK TO YOUR LONG-TERM FINANCIAL GOALS Times are tough, but it’s imperative that you don’t give up on your financial future, writes Itumeleng Monale, the chief operating officer at the Johannesburg Stock Exchange. NATIONAL Savings Month comes at a time when the financial pinch is felt by everyone – likely more than ever before in our lifetimes. The prices of fuel and food are soaring due to global inflation caused by Covid-19 economic stimulus packages, constrained global supply chains and the eruption of the Ukraine-Russia war. According to the South African Reserve Bank (SARB) forecast, fuel price inflation will be up 31.2% by the end of this year and food price inflation will climb to 6.6%. In response, in a bid to tame inflation, the SARB is expected to continue hiking interest rates, raising the cost of debt such as credit cards and home loans. This double blow is putting a strain on consumers. High inflation does not only
result in a rising cost of living, but it also eats into the buying power of consumers. The question then arises: how do consumers manage their money to achieve financial independence in the face of food price increases, whereby the prices of basic food items like bread, milk, flour, cooking oil, meat, mealie meal, and sugar keep on going up? DON’T GIVE UP The rising cost of living has the potential of throwing personal financial plans for 2022 out of the window. During these tough economic times, it is important to remember the financial goals set at the start of this year. Given the changed situation, it may be necessary to make some adjustments but it is not the time to completely give up.
As always, consumers must get financial advice that addresses their needs in areas such as estate planning, tax planning, investment planning, retirement planning, life insurance, and short-term insurance. Executed well, financial planning could lead to financial independence. Also, at times such as this, it is very important to review one’s needs and goals in order of priority. Balancing out savings and buffering yourself against a surprise event that could cripple you financially, is still critically important. The Johannesburg Stock Exchange (JSE) has various financial planning initiatives such as the #JSESheInvests scheduled for 13 August, which is aimed at enhancing money management skills for women and the JSE
