Cape Town - Planning for one’s future involves first looking at the state of one’s finances and budgeting, according to financial planner Marc Joubert.
“If you’re not already sticking to a budget, now more than ever is the time. While it might be painful to see your spending habits, you will learn why it’s necessary to take stock of where you’re spending unwisely and where you could be saving," he explains.
“And who knows, you might also see that you’re spending unnecessarily on some things and can use that cash elsewhere. In the current climate, try not to take on new debt such as loans or clothing accounts."
After sorting out bills, Joubert advises consumers to focus on saving wherever they can.
“Rainy days are a reality. Accidents, like a burst geyser, can happen anytime. If you have savings tucked away, then it won’t be necessary to get a loan and cause yourself worse long-term strain,” he says.
READ: The critical role of emergency savings
There are other times, however, when spending is unavoidable, for example, when the fridge packs up.
The rent-to-own (RTO) option, for example, can help to save towards new household items, according to Rami Sassen, CEO of Teljoy.
In his view, RTOs give you the freedom of not being “locked in” to a contract. Companies such as Teljoy, for example, allow consumers to rent to own refrigerators, furniture and tech devices such as tablets and cellphones.
According to Teljoy's website, RTO is a month-to-month contract that allows you to rent a wide range of household appliances, furniture, electronics and even baby goods with the option to take ownership after the pre-determined rental period.
Sassen, says the monthly rental price is inclusive of delivery and installation, risk cover and a single monthly fee that does not automatically increase with interest rates.
In Sassen's view, the RTO option is most useful for students or young professionals renting a flat and who don’t want to tie themselves into contracts when their financial future is unclear.
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