By Maatla Kgasa
In
Cease to be a slave to your money;
make it work for you
Like most people, instead of trying to
make ends meet with the salary he gets,
a retrospective manner,
he succumbs to a destructive monster
financial stability shall remain a shadow
called
a “BANK LOAN”. He goes to the
people chase for as long as they continue to
bank gets a $1500 loan, buys a car and
live with the same recklessness and abandon
there is the start of messy financial life.
as far as money and finance management is
The bank gives him a 5 year
concerned. Let’s take a typical young man
amortization/repayment plan, which
who graduates from university at 23 years,
means a monthly payment of
struggles to find a job for 3 years till he gets
above
$250 to cater for the interest
one in the city. His starting salary is
charges. This further reduces his already
something like $850 per month. Breaking
meagre disposable income, no savings. At
down his expenses, $250 is swallowed by
28 or 29 years old and already living a
rent, $ 150 is swallowed by food and
miserable life. Mind you, the car needs
groceries. $50 goes to utility bills and $100 is
fuel, constant maintenance and
sent to the family back home. Another $100
servicing. Bam! Is this all worth those
goes to hire purchase payments for the furniyears of education and young as he is
ture . What is left is a meagre $100. He
going through a mid-life crisis? Most
needs to pay a taxi fare to get to work, he
people never recover after this. In fact
needs to buy clothes, have fun, go out and
after
they successfully pay the first loan,
ease off, not forgetting insurance and life
cover deductions. The remaining $100 is far they quickly apply for the second loan to
build a house.
too little to cover all that.