Fraudsters are on the the prowl in rising numbers trying everything to get to your hard earned money. Stockvels are no exception and seem to be soft targets as members are easily drawn into the false promises of fantastic yet unrealistic benefits. Here are some ideas to help you push back on potential fraud.

1. Verify the identity of the person organizing the stokvel. It’s important to ensure that the person running the stokvel is who they say they are and that they have a good reputation. You can do this by asking for references or checking with others who have participated in the stokvel.
2. Understand how the stokvel operates. Make sure you understand how contributions are collected and how the funds are managed. This will help you identify any red flags or suspicious activity.
3. Be cautious of any offers that seem too good to be true. Fraudsters may try to lure you in with promises of high returns or easy money. Be wary of any offers that seem too good to be true and do your due diligence before committing to any stokvel.

Overall, it’s important to be cautious and do your due diligence when joining a stokvel. If you have any concerns or questions, it’s best to speak with the person organizing the stokvel or seek advice from a trusted financial advisor.

What a year…

Looking into the rear view mirror back at 2022, the disrupted global economy has left us with many financial challenges which we will have to carry through to next year. They certainly won’t be going away for a while.

The 3 big ones to contend with are:

The price of oil

The war on Ukraine created a huge supply problem on oil. This quickly played through to a 34% price increase at the pump hiking a litre of petrol to the all time high of R24.

The knock on effect of this imported commodity lead to another challenge:

Raging inflation

As fuel is a major cost component in most businesses this had to translate into higher prices. Inflation in the mid 7% is ravaging its way through our economy and is stubbornly well outside the Reserve Bank target range of below 6%.

The main component in the basket of goods making up the CPI Index if food inflation which is now double digit. This is evident as you browse the shelves of you local supermarket where prices seem to rise daily.

Curtailing inflation is difficult and the first measure of resort is to curb spending. 

The sharp rise in interest rates

The Reserve Bank did what it had too and increased interest rates sharply to put the brake on inflation. This hurt the consumer even more with the consequential cost of debt. 

2022 is leaving us with many other huge problems such as load shedding and a looming water crisis amongst many other delivery problems.

Your financial planning will have to be on point to get through these challenges. 2023 calls for super extra attention to detail on your income and expenses. Capitulation to debt is not an option. Hold on tightly as the end of the storm is no where in sight as yet.