Two weeks ago I wrote about inappropriate spending habits and that these occur across most income groups, with just the items of spend changing.
One of my readers sent me an article around this theme where a study in the US showed that half the respondents would not be able to deal with a sudden unforeseen expense of $400, either at all or without going into debt. This amount being about R6000 for us.
The study suggested that in some cases this was as a result of shopping choices that had been made on credit, i.e. folk racking up purchases that have already put them at a limit of trying to pay off existing credit and then an unforeseen expense becoming an impossibility, or from not building up a small resource of savings that gets left alone for such an event, or simply from the desire to ‘keep up with the Joneses’.
Something for us all to think about: can we deal with an unforeseen R6000 expense tomorrow.