How to grow your wealth in South Africa

Sadly, Mzansi is getting poorer by the year, but analysts have identified a few keys ways you can buck the trend and nurture your own wealth in South Africa. However, before it gets better, there are still tough times ahead. Independent analyst JP Landman says wealth in South Africa will only continue to decline in the coming three years, reports Daily Investor.

Looking at historical data, Landman points out that Mzansi has seen a 6% decline in per capita income over the last decade. This means, instead of earning more and increasing wealth in South Africa, were effectively 6% less well-off. Of course, the last ten years have been marred by the COVID-19 pandemic and widespread load-shedding, which has delivered a strong body blow to the economy and everyone in it.

HOW TO GROW WEALTH IN SOUTH AFRICA

These factors, combined with increasing consumer inflation, a volatile rand, and 12.8% Eskom electricity tariff increases, points to financial distress for a lot of South African households. But we in Mzansi are an industrious bunch, and we’ve long-been adapting so we can nurture wealth in South Africa. According to the latest Consumer Signals report from Deloitte’s, here’s what we’ve been good at scaling back on, reports Business Tech.

With 2024 General Elections just three weeks away – Wednesday 29 May 2024 – citizens find themselves in a holding pattern. However, while we wait to cast our vote and see a hopefully positive outcome, here’s how we’ve also been cutting back on spending, says the Deloitte’s survey.

DEEP DIVE INTO THE DATA

According to their data, Mzansi is eradicating extraneous spending and focusing on essential everyday items only. 87% of survey respondents say the escalation of prices is the reason. We’re also spending less on healthcare, savings and investment than we probably should. Next to take a knock is education and transportation.

Furthermore, the survey results are consistent with economic trends seen in South Africa over the last decade. New-car sales are massively down, which accounts for the buying-down trend on transportation. Likewise, South Africans realise elaborate medical-aid schemes are a waste of money, too. In the current economy, if it was essential, you would have kept it.

INVEST AND SAVE MORE

However, one thing we’re not doing well enough to grow wealth in South Africa is investing and saving. Many citizens are not saving enough, or anything at all. As a result, Mzansi has one of the lowest savings rates in the world, says Deloitte’s. Our average savings is estimated at just 0.13% of Gross Domestic Product (GDP).

The takeaway from this data is clear. Continue with frugal behaviour and eradicate spending on non-essential items. But we must try our best to eliminate debt and save as much as we can. Do these things and you’re well on your way to nurture wealth in South Africa.