Practical financial strategies for families in a challenging economy

ALTHOUGH inflation in South Africa is at the lowest average rate in 21 years, debt is piling up and job losses are throwing everything off balance.

- ASHIKA DEVNARAIN

ASSESS your finances by gathering your financial documents, says the writer.

(Meta AI)

Financial strain can be overwhelming. This can be tough on the entire family. But you are not alone. What you need is a solid plan to help you navigate these challenges, so let’s look at practical steps to manage your finances.Assess your finances

Start by gathering all your financial documents: income statements, expenses, debts and savings. Be honest - you have to know what you are dealing with.

Create a budget

@ List your income — what's coming in?

@ Track expenses: essentials such as rent, food, utilities, bond, policies and vehicle repayments versus non-essentials such as dining out, subscriptions, gifts, clothing and luxury items.

@ Prioritise: pay essential expenses first, then debt, then savings.

Tackle debt strategically

@ List debt: focus on high-interest ones first.

Contact creditors: negotiate payment plans or lower interest rates if possible.

Consolidate if it helps lower the payments.

@ Pay bills on time. You need to maintain your credit record.

@ Don’t take on any new credit.

Job loss?