GREETINGS!

Do not live beyond your means - if you cannot afford it, live without it.

The South African economy is facing one of its difficult periods. This is a result of forces beyond the country's control like rising oil prices. The rise in oil prices means that the price of petrol rises, meaning an increase in transport costs, food, electricity and also interest rates.

Many poor people spend more than half of their income on food and basic services. The ever-rising cost of living makes it difficult for them to save. To meet some of their basic needs, many get into debt.

We must all develop a culture of saving and spending our money wisely. In this edition we offer advice on how to live within your means, but most importantly how to get out of the debt trap. Pay off your debts as soon as possible and don't accept offers of buying on hire purchase from creditors. Settle all accounts and then start a savings account. Your savings should be equal to about three months salary. An easy way to save is to get together with other people. Stokvel is one of the most popular ways to do this. It makes ubuntu work as people help each other to save and work towards a common goal.

The social grant system is one way government is helping the poor to avoid the debt trap. Government is therefore making it easier for poor people to access social grants.

Apart from government assistance, a saving nation is a winning nation, because in times of harsh economic conditions people are able to use their savings to protect themselves.

The Editor