Understanding the importance of living within your means
As people's living expenses increase, Eunice Sibiya, the Head of FNB's Consumer Education Program, says that people need to adapt their finances and live within their means.
Times are tough. Money is tight. We have to tighten our beltsEunice Sibiya, Head of FNB’s Consumer Education Program
In this week's #BeFinanciallySmart feature, Azania Mosaka and Sibiya discuss the importance for people to live within their means.
Sibiya says she is worried that people do not prioritise where their money is going.
If you look at the average household spend, they spend more on recreation and lifestyle, than on educationEunice Sibiya, Head of FNB’s Consumer Education Program
Statistics South Africa's Living Conditions Survey showed the extent of consumption in South African households:
- 32.55% of money goes to housing and utilities
- 16.29% is for transport
- 14.68% is spent on goods and services
- 13.75% is spent on food, beverages and tobacco
Living expenses are increasing, and we need to adapt our budgets to maintain our lifestylesEunice Sibiya, Head of FNB’s Consumer Education Program
So, are you living within your means?
If we truly want to see financial freedom, we need to pay close attention to our transacting behaviour, our prioritising, planning, and just being focusedEunice Sibiya, Head of FNB’s Consumer Education Program
Listen to the full audio below: