South Africans need to tighten their belts considerably

An economist says South African households’ should manage their finances very carefully and budget accurately in the period ahead.

Raymond Parsons, an economist at the North West University’s Potchefstroom Business School says South African households’ expenditures are increasingly exceeding their income.

Parsons says,  “Both the government and the private sector and the households will have to tighten their belts a little bit more. It will be difficult, but unfortunately we have to get through this phase. We have to send out the message that we are going to boost their confidence and consumer confidence, but the fact remains both government and all of us will have to tighten our belts a little more where we can afford to do so”.

Research shows that SA Household’s average monthly income or revenue is R10 842, while their expenses amount to R12 095 which equates to a shortfall of R1 253 every month, and therefore resort to borrowing money.

– Katleho Morapela/Courant News