Sanlam Ends One Rand Family Experiment

 

As Sanlam’s National Savings Month experiment comes to an end, the One Rand Family is reflecting on their experience of living solely on R1 coins for the month of July. Now intimately aware of where their money goes every month, they are committed to making a number of changes as a family to enable them to prepare for and maintain a healthy financial future.

 

The final episode shows just how far they’ve come. Short on cash, they spend the final nine days enjoying home-cooked meals, packed lunches for work and wearing clothes that were purchased and then forgotten about. And as they are handed back their cards the family’s biggest spender, mom Londi, takes the first brave step by cutting up her credit cards.

 

As the One Rand Family turns over their new financial leaf, experts highlight the eight key tips South Africans can take away from this inspiring journey to start making a positive change in their own lives:

 

Make your money work for youArthur Kamp, Sanlam Economist:

“You work hard for your money, so make it work hard for you. When you take on debt you are using someone else’s money and they expect you to pay it back – with interest.”

 

Don’t allow your emotions to drive your financial decisions Mavis Mazhura, International human behaviour specialist and author:

“Become aware of the ‘invisible’ forces driving your money habits. For example, when you’re experiencing negative emotions such as anxiety, desperation or anger, don’t go shopping. Don’t allow your emotions to be in the driver’s seat when it comes to your financial decisions.”

 

Make budgeting a family activity Rafiq Lockhat, Clinical Psychologist and Executive Member of the Psychological Society of South Africa:

“Always, always do a budget and do so with the whole family present, so that everyone knows what it costs to run ‘Family X Pty (Ltd)’. Everyone will then know how much spending money is left over after all expenses have been paid, and how much can be set aside for savings.”

 

Create and stick to a proper financial plan Karin Muller, head of growth market Solutions, Sanlam

“Work according to a proper financial plan so that you make conscious financial decisions. Through your actions you make unconscious financial decisions that affect your long-term financial position. If you work according to a plan you can make the decisions a lot more consciously and understand the trade-offs you are making every day.”

 

Write down your expenses and keep track Maya Fisher-French, Financial journalist and author:

“Write down what you spend every day for one whole month – the reality will surprise you – there is so much wastage in our day-to-day spend.”

 

   With small financial behavior changes, significant money can be saved

Gerald Mwandiambira, South African Savings Institute acting CEO

“Many South Africans simply give up thinking that it is “too hard” but The One Rand Family has shown that with small financial behavior changes, significant money can be saved. They also started sharing their experiences with friends and family, this is how a culture of saving and budgeting can spread through communities.”

 

To solve a problem, you have to be aware that it existsShareen Richter, happiness expert:

“As you start dealing with a problem, your happiness increases, because you receive a sense of accomplishment in knowing you are doing something about it. Change is hard and can be very uncomfortable but through the challenges and pain comes real happiness from knowing you are ultimately in a better place.”

 

Parents – lead by exampleJamey Lipschitz, wealth manager at Sanlam Private Wealth:

“The values in a home are set by the parents and absorbed by the children. If South Africa is to build a culture of saving, parents need to set the example and theses values will be carried forward by the children.”