Rising interest rates and inflation, coupled with a slowing economy, are a given based on the economic data released this week.
----
The reality is that days of low interest rates and low inflation are numbered and those who have overstretched themselves will start feeling the pinch.
Dawie Roodt, an economist at Efficient Group and who calls himself a conservative on finance, says: "It is better to have a budget. This budget should include your income and expenditure and this might seem obvious to most people but most of the time it is not followed."
Roodt reckons that it is important for people to categorise their expenditure in order of importance - such as the mortgage, electricity and child support. "The bottom or least important items on expenditure should be eating out, presents and holiday. The most important on top of the list is unexpected expenditure in the case of something going wrong, such as increasing interest rates and petrol price."
Did you like this article? Share it with your favourite social network.