FNB Commentary: Financial Principles To Keep In Mind In These Trying Times

FNB Spokesperson:  Dhashni Naidoo, Programme Manager at FNB

Households will start
to feel the financial impact of COVID-19 in the months to come. So it is
important that we plan, prioritise spending, manage debt, use resources
sparingly and be disciplined about sticking to the plan.  

  • Children will be at home for an extended period – readjust your budget to cater for the additional costs that usually come with the kids being at home.   
  • These trying times
    call for cautious spending.  Cut back on luxury items and unnecessary expenses. 
    Save where ever possible.  One cannot predict how long it will take for
    the situation to stabilise. The idea is that adopt a disciplined way to
    managing every cent and make sure we are keeping some money aside to help us
    weather this. 
  • Look for specials, buy
    only what you need and use your loyalty reward programmes for
  • Take advantage of the
    reduced repo rate by the South African Reserve Bank which is now at 5.25% and
    prime lending rate at 8.75%. This is a much needed financial relief for
    consumers, it means consumers will be paying less for debts such as car, home
    loan and personal loans. The extra available funds can now go towards your
    saving or paying off debt quicker.

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