STEPHEN CRANSTON: South Africans living from hand to mouth with little in the kitty
There are ways to avoid paying too much to financial advisers who do very little
It isn’t only lower-paid employees and members of the informal sector who do not have a “rainy day” fund to take them through the pandemic. Right across SA many do not have a conventional pot of savings. According to a survey by fintech JustMoney, few SA families (just 21%) can afford an emergency payment of even R5,000, and only 10% more than R10,000.
Almost 20% admitted that they had never drawn up a monthly budget. More than two-thirds said they could not live a month on their savings. It found that 27% of people were planning to ask for a payment holiday on their debt. Instead, they consider their home and their pension fund to be their rainy day fund.