Petrol price to be cut!
The Department of Minerals and Energy is expected to cut the price of petrol on the 3rd of December.
iAfrica explains that the petrol price is based on something called the daily recovery rate which is the difference between what it costs us to get the petrol including the exchange rate and the price at which it is sold. This can be either under or over depending on currency fluctuations.
It has been calculated that if the rate stays the same as it has been recently we could see a whopping R 1.65 per litre cut in the price of petrol.
Business Report also carried the story stating that the bonanza would be based on the average over recovery for this month. The price has already fallen from R 10.70 in July to R 8.96, and we expect further cuts. Maybe now that you can afford to fill your car again you should look at car finance, but even better why not get a smaller vehicle with lower insurance and petrol costs and save up for the January sales.
This article also looked at the possibility of a rate cut as inflation appears to be falling and may even get back in the target range next year.
Business Report brang us a story on new data released by Unisa's Bureau of Market Research. The gist of this was that those who earn between R 500 000 and R 750 000 per year were the most in debt.
Well if it was important to drive a flash car live in a huge house and spend conspicuously it is now imperative that saving, paying off your debt and budgeting become the new cool. The age of conspicuous consumption is dwindling away although like all things it will probably come again.
iAfrica also looked at these data and reported the fact that our gearing is so high that 82 cents in every single rand is going towards paying off debt. This is an astronomical sum and should be cause for serious concern.
Essentially now is the time to cut back on your spending learn how to budget and stick to it, if you get your self in to financial difficulty look at your lifestyle factors, do you really need that extra packaging around your veggies to make the look 'nice' but that adds a 20% premium?
The crunch is here open your eyes and deal with it.
In better news Business Day reported that African Bank Investments Limited (ABIL) were upbeat as their earnings have surged.
ABIL posted a 14% rise in profits. So if you really can't help your self and just have to have that chi-chi whatever it is then why not get your self an African Bank credit card.
Just remember to pay off your entire balance every month or their earnings will jump even higher!