Too many people in South Africa do not understand money. They comprehend what money is, but they don’t appreciate how money works and how easy it is to get into difficulties with it. All too often, young South Africans see their cash simply as one of their possessions, and as such, they don’t believe its anyone else’s business what they do with it.
The different types of spenders
On the other hand, there are also a few people who worry about what others will think of what they buy. Its almost as if they have no free choice of their own. They feel they need to gain approval from somebody before they make the simplest of purchases.
Then there are the people who buy things without giving any thought to the essentials. These are the ones who often end up having their phones disconnected or having their homes or other pieces of property reclaimed by bailiffs.
On the other side of the coin, there are those who only spend on the necessities. These people will never enjoy the ability they have earned through their own hard work to be able to afford some of life’s little luxuries.
Lastly, there are those who either spend money on themselves in an overly selfish manner or who feel hopelessly guilty about spending anything on themselves and who totally sacrifice themselves for others; not only in terms of money but regarding their time as well.
All of these examples are reasons why it is so important to understand the common myths that many South Africans believe when it comes down to money matters.
Finding the right balance
As you read through the various attitudes that people have towards their personal money, it becomes evident that the majority of us evince all types of these behaviours and attitudes at different times in our lives. The trick, of course, is to strike a balanced approach. In doing so, you will then feel some sort of sense of satisfaction and peace of mind.
An article on the Businesstech.co.za website on the subject of how South Africans in their twenties and thirties are spending and saving their money makes for interesting reading.
Avoid credit card abuse
One of the biggest temptations in life is to abuse credit cards. The spend now and pay later philosophy of life will catch up with you in the end. The best way to use these cards is to treat them like cash cards. In other words, whatever you put on your credit card you should pay off completely when payment becomes due. Better still don’t use cards at all. Only use cash.
Don’t fall into the trap of thinking that you have the right to spend your money just because you’ve earned it. Yes, it is your money, and you can spend it how you like. But, if you spend it unwisely, you’re more likely to run into money trouble sooner or later.
Learn to respect money
Once you have discovered what money really is and you have sorted out fact from fiction, the next thing you must do is to learn to respect it. When you have achieved this respect, responsibility in the way you spend your cash will come more naturally.