How the Weakened Rand Impacts South Africa’s Youth: 5 Tips on How to Make Your Money Work for You.
To look cool, be hip and in touch with the world you have to have all the gadgets, right? Wrong – especially with the weakened rand.
The cost of imports
What people don’t realise is voracious spending comes at a cost, increasing the demand for imported goods, South Africa’s unemployment and deepening the Rand woes. The power of a country’s currency is a strong indicator of the nation’s economy. Convert R100 into US Dollars at recent (17 March, 2016) exchange rate, and you’ll get US$6.49 – Less than minimum wage in the USA.
How does that affect you?
Most young people spend their money on imported, and thanks to the weekend rand, consistently more expensive, technology; laptops, mobile phones, TVs and X-boxes. Then there’s luxury goods; cars, perfume and branded clothing.
How to survive
A sure way to rapidly becoming very poor is to take out a loan to buy more stuff. People need to get over the erroneous idea that brand new, and bigger – and most expensive – is best. Instead, start a new trend where making the money last longer than the month is the ultimate in cool.
5 tips to making your money work better for you
Insure you won’t be stranded
Insure those items that are expensive to replace. At least if they are stolen or damaged you’ll be able to afford to replace them. (And remember to back them up!)
Get over your ego
You need a laptop, not the biggest, latest, most expensive laptop. You can get reasonably priced models that will do exactly the same job as the expensive version, or even buy a refurbished laptop.
Share the life
Remember how your mom always told you sharing is caring? Well, sharing the big stuff can be good not just for your wallet but your social life as well. It’s called collaborative consumption. Investigate things like care-sharing with Locomute and CarPoolWorld, house shares with TheRoomLink, even designer thread shares with HipCloset. You get the benefit at a fraction of the cost, and you meet new people.
Create another income stream
You’ve all seen the TV ads about selling stuff you don’t want, need or use anymore with Gumtree and OLX. Here are more ideas: Sell your old unused text books on Pimpmybook or Rent out a room with TheRoomLink.
One of the best ways you can help South Africa recover is to buy local brands instead of imported ones – they’re often better anyway! The Rand may be down, but that doesn’t mean you have to be!