Public urged to plan for a financial stress free festive season
As the festive season approaches, financial experts advise South Africans to prioritise effective financial planning to alleviate cash flow issues and reduce holiday stress.
As South Africa’s inflation rates show a slight decline, reaching 4.4% in August 2024, many citizens continue to grapple with the harsh realities of a high cost of living.
Momentum Group Foundation consumer financial education specialist Thabo Qoako sheds light on the importance of financial planning for managing cash flow during the festive season.
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“When you have a financial plan in place, you’re better equipped to manage your cash flow and make informed decisions,” Qoako said.
Qoako underscores that making financial well-being a top priority can create a balance between enjoying the holiday spirit and safeguarding personal financial goals.
He suggests that even a little planning can lead to a more enjoyable break this festive season, devoid of financial anxiety.
World Financial Planning Day, on October 9, serves as a timely reminder of the value of integrating financial planning into everyday life.
Qoako said such planning empowers individuals to make informed choices about earning, spending, saving, and investing, all of which contribute toward achieving their financial goals in a structured manner.
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According to findings from Debt Busters, the financial landscape in South Africa in 2024 poses heightened challenges, especially for women, who report significant levels of financial stress.
Almost four out of five women experience this burden, which is significantly higher than their male counterparts.
This reality highlights the crucial necessity for effective financial planning and support systems, particularly for women navigating these tough economic conditions.
The Debt Busters report further reveals that lower-income individuals are most concerned about paying off debts, compounded by additional worries regarding school fees. In contrast, those in higher income brackets primarily focus on retirement security.
Qoako emphasised that embracing the journey toward financial wellness begins with confronting the stigma surrounding debt and eradicating financial misconceptions.
“There’s no shame in seeking guidance from a financial advisor during tough times. Prioritising a financial plan and reaching out for professional help can dismantle the stigma surrounding debt and encourage individuals to take active steps toward a more secure future,” Qoako said.
Qoako added that achieving financial stability is about living without the shackles of financial anxiety.
“A clearer understanding of your finances is possible when you acknowledge your current circumstances and gaps, seek knowledge, and establish defined goals.
“This approach enables better control over your budget and can markedly improve your financial lifestyle.
“Most importantly, you can relish this upcoming festive season without compromising your peace of mind or suffering from financial stress,” Qoako concluded.
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