The South African Reserve Bank announcement that the repo rate will be unchanged has been welcomed by South African homeowners, according to Farzana Botha, segment manager at Sanlam Risk and Savings.
The relief follows 10 consecutive increases since November 2021 - a collective 4.75% increase.
The rising cost of living and the increases in interest rates has left people overwhelmed at the struggle of finding room in their budgets to cover their expenses.
Botha said: “It is hard not to feel overwhelmed by economic factors outside of our control. I encourage people to focus on what is within their control and enlist the support of a professional financial adviser to help them navigate these challenging times.”
Here are five ways a financial adviser help you get through these tough times:
– You can work with a financial adviser to set up a budget that takes into account your income, expenses and savings.
– A financial adviser can help you in planning and setting realistic savings goals and provide you with support in reaching those goals.
– A financial adviser can offer you guidance on how to invest your money and save investors from making emotional decisions.
– A financial adviser can offer you advice on your long-term investments and which investment products best suit you.
– A financial adviser can assist people in setting up a plan to pay off their debts.
– Working with a financial adviser can help people figure out how much money you needed to putting towards your retirement savings.
According to Botha, there are some aspects of your finances which benefit from higher interest rates.
Botha said: “The interest earned on your retirement savings may potentially be higher, and, because the interest in your retirement annuity (RA) does not incur tax, the growth is favourable by comparison to a taxed investment vehicle such as a unit trust.”
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