According to the quarterly Bulletin – No 301 – September 2021 published on the SARB website on 2021-09-28, the Debt to disposable income for South African households sits around 66.7%.
- This means households spend two-thirds of their take-home pay to service debt and only have a third of their salary to spend on everything else (including insurance benefits such as Funeral Policies, and day to day Airtime and Mobile Data).
- This worsens when interest rates increase and the cost of paying debt rises and it must be noted that…
- As our debt increase, we have the tendency to cancel our grudge payments since we are under stress from the financial institutions to make repayments to avoid added fees and a downgrade in one’s credit score. Insurance policies are considered as grudge payments – “we need them, but we don’t like paying them!“.
The cost of well-being, coupled by the price people are paying for the mistake to keep up a lifestyle they do not have the financial means to maintain, is high, and inaccessible to millions of people.
- To cope, credit has become a lifeline for millions of people, especially in South Africa where a well-developed financial system has led to increased access to credit.
- It must however be noted that while this supports economic growth, over-extension by households has unintended, negative consequences!
We need to think and act SMART about where, and how we spend our money.
- Historically, the go-to companies and institutions we currently support are top heavy and capitalistic obligated to make profit to,
- (1) pay their shareholders annual dividends,
- (2) keep their directors and staff compliment happy and
- (3) sustain their brick-and-mortar infrastructure.
- Times are changing, and to us, this is OLD SCHOOL methodology which benefit only a few!
- People are more and more thinking about how and where they need to spend their money. They want more!
People want to become part of an economic Eco-System where they can benefit financially from their direct, and indirect actions.
For years we have been helping the “go-to” companies and institutions to grow their membership base by referring people to them by means of word-of-mouth advertising.
There is nothing wrong with that and it is a natural thing to do. All we are saying is that we need to think smart when we do so, by asking our-self the following question: “will the “go-to” company, or institution we are currently supporting and referring people to, recognize the fact that;
(1) we are helping them to build, their company,
(2) treat us like shareholders and
(3) pay us a dividend on a RECURRING basis?“
Please Note: we highlight and put emphasis the word, “Recurring”.
A once-off benefit is like a pat on the back. It feels good there and then, but it’s not a lasting, or recurring benefit!
At MEMA we have a social-economic system that puts people over profits, to ensure lasting benefits. This is the future. This is the “NEW NORMAL”!
- We appreciate and recognize when our customers act as ambassadors, and refer someone to us. YES, we do treat them like shareholders, and YES, we do pay them profits on a recurring basis!
AND WE CAN DO THIS WHY?
We choose to apply “Lean Six Sigma” principals that rely on:
(1) focusing on the customer;
(2) mapping value streams offered;
(3) removing unwanted and non-value overheads and waste;
(4) reducing variation and standardizing our offerings to ensure customer satisfaction.
This article is part of our awareness campaign to get people to understand that there are viable alternatives out there when it comes to purchasing smart, and that Mema is pretty the leader in the pack when it comes to being dedicated to save our customers a ton of money.
Talking about, “savings”. Read this article on how much money we actually did save our customers:
Thank you for making time to listen, or read this article.
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