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Managing your money during a recession

Posted on Apr 29 2020
Managing your money during a recession
How will this recession affect ordinary people in South Africa? We will see many retrenchments during this period. Many people will be offered severance packages which will force them to look for self-employment opportunities. This recession will decrease the value of many people’s homes as demand for property will decline and downscaling to more affordable housing will increase. How can ordinary people and/or small businesses better manage their money during a recession? Small businesses will have to look at cutting fixed costs and running their operations more cost effectively. Members of the public will have to look at alternative or more affordable options and cutting down on luxuries. They will have to plan their monthly travel budget by commuting with work colleagues or making use of public transport. Other things to consider are looking at more affordable schooling for their children, revising their medical aid and switching to a more affordable plan, and switching over to more affordable and/or cutting down on home entertainment. How can ordinary South African families prepare their personal finances to survive now that a recession has been declared? They are going to have to look at consolidating their debt in a lower charging interest facility. Electricity consumption needs to be managed better and families need to have a plan put in place where the whole family works together in working sparingly with their electricity.