Financial Thoughts with Lesego Molapi

02/01/2023

Building good spending habits is an essential step towards financial stability and security. By learning to manage your money effectively, you can set yourself up for long-term success and avoid financial stress. Here are some tips on how to build good spending habits and why they are important:

Create a budget: A budget is a plan that outlines your income and expenses, helping you to track your spending and identify areas where you can cut back. Creating a budget is the first step towards building good spending habits, as it allows you to see where your money is going and make adjustments as needed.

Save regularly: Building good spending habits also means setting aside a portion of your income for savings. This could be for short-term goals, such as saving for a down payment on a house, or long-term goals, such as saving for retirement. By saving regularly, you can build a financial cushion that can help you weather unexpected expenses or financial setbacks.

Avoid overspending: Overspending is a common pitfall that can derail your financial goals. To avoid overspending, it's important to be mindful of your purchases and only buy what you need. Consider setting limits for yourself, such as only allowing yourself to make a certain number of non-essential purchases each month.

Pay your bills on time: Failing to pay your bills on time can lead to late fees, damaged credit, and other financial problems. To build good spending habits, it's important to be disciplined about paying your bills on time, whether it's by setting up automatic payments or setting reminders for yourself.

Use credit responsibly: Credit can be a useful tool, but it's important to use it responsibly to avoid getting into debt. This means only using credit for purchases that you can afford to pay off in full each month and avoiding maxing out your credit cards.

Why are good spending habits important?

Good spending habits are important for several reasons. First and foremost, they help you to manage your money effectively and avoid financial stress. When you have a budget in place and stick to it, you'll be less likely to overspend and accumulate debt, which can be a major source of financial strain.

Good spending habits are also important for long-term financial success. By saving regularly and using credit responsibly, you can build a strong financial foundation that will help you achieve your goals, whether it's buying a house, saving for retirement, or starting a business.

In short, building good spending habits is an essential step towards financial stability and security. By learning to manage your money effectively, you can set yourself up for long-term success and avoid financial stress.
Lesego Molapi

28/12/2022

Starting an online store can be a great way to sell products or services to a wider audience, and using social media tools can help you reach potential customers and effectively market your store. Here are some steps you can follow to get started:

Choose your platform: There are many options for setting up an online store, including ecommerce platforms like Shopify, WooCommerce for WordPress, and BigCommerce. Consider the features and costs of each platform to choose the one that is right for your business.

Set up your store: Once you have chosen a platform, you will need to set up your store by adding products or services, creating categories, and setting up payment and shipping options. Make sure to include clear and detailed descriptions of your products, as well as high-quality photos.

Promote your store: Now that your store is set up, it's time to start promoting it to potential customers. One effective way to do this is through social media. You can create accounts on platforms like Facebook, Instagram, and Twitter and use them to share updates about your store, new products, and promotions. You can also use hashtags and engage with other users in your industry to get your store noticed.

Use email marketing: Email marketing can be a powerful tool for promoting your store and keeping in touch with your customers. You can use email marketing platforms like Mailchimp or Constant Contact to create newsletters and email campaigns to send to your email list. Make sure to include links to your store and information about any promotions or sales you are running.

Utilize paid advertising: In addition to organic social media promotion, you may also want to consider using paid advertising to reach a wider audience. Platforms like Facebook and Google Ads allow you to create targeted ads that will be shown to users who are most likely to be interested in your products or services.

By following these steps and being consistent with your marketing efforts, you can effectively promote your online store and reach potential customers through social media. It's important to remember that building an online presence and attracting customers takes time, so be patient and keep experimenting with different strategies to find what works best for your business.
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Author Lesego Molapi

27/12/2022

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EXCO Trader

27/12/2022

As a single parent, it can be a challenge to manage your finances and ensure that you are making the most of your income. With the current inflation rate, it is more important than ever to develop good spending habits in order to stretch your budget as far as possible. Here are some tips to help you get started:

Set a budget: The first step in developing good spending habits is to set a budget for your household. Determine how much money you have coming in each month and allocate it towards your necessary expenses, such as rent or mortgage payments, groceries, and utility bills. Leave some room for discretionary spending, but be sure to prioritize your essential expenses first.

Cut unnecessary expenses: Look for areas where you can cut back on your spending. This may include canceling unnecessary subscriptions, eating out less, or finding cheaper alternatives for certain items. Every little bit counts, so take the time to scrutinize your budget and see where you can save.

Look for deals and discounts: Inflation can make it difficult to afford certain items, but there are ways to save money on your purchases. Shop around for the best deals and take advantage of discounts and coupons whenever possible. You can also consider purchasing secondhand items or trading with others to get what you need.

Consider a side hustle: If you are struggling to make ends meet with your current income, consider taking on a side hustle to bring in extra cash. This could be something as simple as selling items you no longer need or offering services such as pet sitting or lawn care.

Build an emergency fund: It is important to have a financial cushion in case of unexpected expenses or emergencies. Start setting aside money each month for an emergency fund so you have a safety net to fall back on.

Developing good spending habits as a single parent can take time and effort, but it is worth it in the long run. By being mindful of your spending and looking for ways to save, you can stretch your budget further and provide for your family in the face of rising costs

22/12/2022

As the holiday season approaches, many people start to feel the pressure of buying gifts and spending money on festive celebrations. While it can be tempting to splurge on loved ones and ourselves during this time, it is important to remember to be mindful of our spending habits.

As a personal finance enthusiast, I have learned the importance of budgeting and saving throughout the year so that I am able to afford the extra expenses that come with the holidays. However, I understand that not everyone has the same mindset or financial situation.

One way to curb overspending during the holidays is to create a budget and stick to it. Determine how much you can realistically afford to spend and allocate funds accordingly. This can help prevent last-minute panic buying or using credit cards to make purchases you can't afford.

Another tip is to be strategic about your gift-giving. Instead of buying a bunch of small, inexpensive gifts, consider purchasing a few larger, more meaningful presents for the people you care about most. This can be more cost-effective and show that you put thought into the gifts you give.

It is also important to remember that the holiday season is about more than just material possessions. There are plenty of ways to show your love and appreciation for others without breaking the bank. Consider making homemade gifts, offering services like babysitting or house cleaning, or simply spending quality time together.

In conclusion, it is important to be mindful of your spending during the holiday season. By creating a budget, being strategic about gift-giving, and remembering that the holidays are about more than just material possessions, you can enjoy the festive season without overloading your finances

22/12/2022

09/12/2022

Buy
GBPUSD
SL 1.23164
TP 1.23459

09/12/2022

Trading the USD Core PPI which is forecasted to have an increase
PPI is Producer Price Index is an index that measures the price of finished goods and services sold by Producer, excluding food and energy.

The Dollar will Lose value today then other currencies will increase in value.

Author: Lesego Molapi

28/11/2022

Who get benefited from inflation?

People who have to repay their large debts will benefit from inflation. People who have fixed wages and have cash savings will be hurt from inflation. Inflation is a situation where the money will be able to buy fewer goods than it was able to do so as the value of money comes down.

Supposed your working and earning R1 000 000 per year, and inflation is 6%. This simply means that your money loses value by 6% but if you can get something that you will put your money into and it generates a percentage above the inflation rate, saving money isn't the best option currently.

28/11/2022

Inflation Can Also Help Lenders

The higher prices of those items earn the lender more interest. For example, if the price of a television increases from R1,500 to R1,600 due to inflation, the lender makes more money because 10% interest on R1,600 is more than 10% interest on R1,500

28/11/2022

What is the current inflation rate 2022 in South Africa?
The consumer price index increased by 0,2% month-on-month in August 2022. The main contributors to the 7,6% annual inflation rate were food and non-alcoholic beverages; housing and utilities; transport; and miscellaneous goods and services.

28/11/2022

Inflation is a measure of purchasing power. It’s defined as the rate at which the prices of products and services change over a given period (usually a year). Simply put, when inflation rises, consumer spending declines because when prices go up, people can’t afford to buy as much.

For example, when your grandfather tells you that the ice cream cone he is about to buy for R10 was just R2.50 when he was your age... that’s inflation. Over time, inflation effectively devalues a currency because the same amount of money buys fewer goods.

inflation takes into consideration many factors, from broad measures like the overall cost of living in a country to more specific needs, like groceries, fuel, and heating costs—even the price of a haircut.

These products and services track specific segments of the economy. Economists categorize these segments into a measurement tool known as a market basket. They then compare the prices of the goods and services over different time periods, and as a result of their efforts, they are able to create an index of prices.

There are many factors that can cause inflation. Natural or man-made disasters, like wars or oil spills, can cause prices for raw materials to skyrocket. Increased consumer demand for products or services can also drive-up prices, causing inflation. Federal policies, such as raising or lowering interest rates, have an effect on inflation, as do monetary policies, which can enhance or devalue currencies.

Economists have defined main types of inflation by their root cause:

1. Demand-pull inflation happens when there is an imbalance between supply and demand. When demand for a product outpaces production capacity, it causes a strain on resources, and this results in an increase in prices.

2. Cost-push inflation occurs when production costs increase prices. An example of this can be found in the energy sector. When the supply of crude oil is disrupted, demand may be unchanged, but gasoline prices will rise because supplies have lessened.

The country’s central bank, the Federal Reserve, helps to regulate inflation by raising, maintaining, or lowering interest rates, which has a powerful effect on the overall economy. Their actions impact everything from borrowing costs in the real estate market to bond yields to the prices of raw material goods, like commodities.

lower interest rates mean that the costs associated with borrowing money, i.e., the “interest” or premium an investor must pay to receive those funds immediately, is lower. When consumers pay less interest, they also have more money to spend and feel compelled to buy more—and more expensive items, like homes and cars—because it will cost less in the long run to pay for them.

In a similar way, corporations, factories, and even farms benefit from lower interest rates, as they, too, can afford to make larger purchases, like machinery or land, which could also spur productivity.

In an environment of rising interest rates, consumers typically cut back on spending and those big-ticket purchases, and as a result, the economy slows.

Looking at the dollar index it is about to get down, follow for more.

17/10/2022

The US Dollar Index,
Has the dollar reached its peak?🤨🙄

17/10/2022

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