The Money Makeover journey continues. If you haven’t started already, follow six ordinary South Africans as they take up the City Press/Absa Money Makeover Challenge and undergo a money makeover boot camp. During the six-month competition they will each test their resolve and make tough decisions on every aspect of their finances.
Each candidate has been allocated their own Absa financial adviser who will assist them in organising their finances and reaching their personal financial goals. Along the way for those who stick to their money plans there are incentive prizes and the chance to win the big investment prize.
This is the first in a series of six video Q&As that offer you the chance to ask your questions and learn from the lessons our contestants have already learned.
In the first episode, personal finance editor Maya Fisher-French talks to Absa expert, Ronnie Mbatsane, Managing Executive, Regional Coverage: Gauteng & Limpopo.
Three months into the Money Makeover Challenge and already the candidates have embraced the challenge to turn around their finances. Fisher-French and Mbatsane unpack the hacks and tricks they have used to save thousands of rands.
While every one of the six contestants –– have different goals to finance, they all had to start in the same place. Each had to create a spending plan to know where their money is going.
Before joining the challenge, each of our six contestants confessed their worst financial mistakes:
Mpho - I buy things I think will enable me to make money, but I end up not making it. I like helping people, so some of my money is among the people in my community who borrowed money and now it’s difficult to recover.
Motsei - After losing my job, I used the money to start a restaurant at a shopping complex. The rent was astronomical, and I lost a lot of money in that venture.
Sandra - My biggest financial mistake was cancelling my retirement annuity and investment account. At the time, I didn’t have any other financial commitments. If I had carried on with them, I would at least have some money to fall back on for emergencies.
Sanet - At this stage, we don’t know if buying the food truck franchise was a good or bad decision, as we feel like we are just going backwards. We did not do our homework on the high levies when we bought the investment flat.
Wisani – To take out credit I did not need.
Zinzy - I have made many mistakes, including agreeing to buy a sibling a car on the promise that he would pay the instalment; freelancing to earn extra income and not sorting out the tax implications; taking credit to supplement monthly commitments; taking a mortgage on an empty stand, without proper planning around when I would be able to build.
This post and content is sponsored by Absa and produced by Adspace Studio.