SMALL and medium sized businesses should see the recent petrol and diesel price increases as reinforcing the mantra to save.
So says Danny Zandamela, CEO at Ithala SOC Limited, a financial services provider which regularly interacts with business owners and consumers on issues of financial management.
Motorists now pay seven cents per litre more for 93 and 95 grades of petrol, and between one and two cents per litre more for diesel.
“The difficult economic environment teaches us an important life lesson which is to prioritise. With some consumers feeling the financial pinch after having splurged over the festive season… long-term financial planning is important,” said Zandamela.
“Putting away money for the unforeseeable future is very necessary. As the cost of living rises, financial flexibility and disposable income are impacted. Irrespective of your level of income, all individuals need to inculcate a culture of savings.
“If you want to reduce your financial risk, save as a means to empower yourself financially. Financial freedom lies in our own hands. Therefore, be serious and committed to reducing over-indebtedness and reliance on credit and loans. Regular saving will reduce financial stress and remember, no amount is too small to save.”
Zandamela said Ithala offered a number of financial tools to empower people to save such as a 32-day Express Account or a fixed deposit over six, 12 or 24 months.