With the rising cost of living and a disturbingly wide pay gap across different races in South Africa, making your money work for you is key, this is how:
Stats SA recently released its findings which confirms that South Africa is the one of the most unequal countries in the world. On November 14, the Inequality Trends in SA revealed that white people earned three times more than black people on average. It further mentioned that average monthly earnings amongst black people were R9 186, while white people earned R100 205 in 2015, not only that, the black population is experiencing the highest level of unemployment at more than 46 per cent. These figures are appalling, considering that we are 25 years into democracy and our worth shouldn’t be based on the colour of our skin but by our experience and what we can put to the table. With this said, stretching your salary to the next pay day is possible. This is how:
Cut back on unnecessary spending: There are things we think we need but can survive without, gym memberships, clothing accounts and take-aways or buying food at work waste a lot of money. Rather use that extra money to pay off your loans.
Pay yourself first: We all know that saving is very important, but we often make the mistake of saving what is left days before payday. Rather, put aside a certain amount in a fixed account or in investment companies.
Hustle on the side: There is no way that your boss will increase your salary to more than what it can afford, so rather do something on the side that will earn you extra money at the end of the month. You have a skill that is needed around you, observe how you can offer your services at a certain fee.
Avoid taking more loans or borrowing money: It takes longer to pay off your debt because of the interest rates, so avoid adding on to what you currently owe. The best way to do this is by living within your means. Prioritise on important things like paying off your debt, school fees, groceries, transport money and other important needs that your money has to fund.
Look for other career options: Negotiating a salary is always a challenge because we don’t want to lose a potential job opportunity, but next time you go for an interview do your homework on the market-related package and take it from there. Sometimes, our desperation for jobs make us take any offer, but negotiate your expectations first instead of settling for anything. As a black female, I know it’s not easy but we need to prove our worth every step of the way.