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How To Survive South Africa's Technical Recession

A few months ago, South Africa was downgraded to junk status and now we've been hit with a technical recession.

19/06/2017 03:58 SAST | Updated 19/06/2017 07:05 SAST
Dean Mitchell/ Getty Images

It is finally here, we should have seen this one coming or maybe we did but turned a blind eye because we feel almost powerless – after all we did march in hopes to unseat Jacob Zuma which did not do much, he probably didn't even budge and most likely laughed at our attempt with a "now this is entertainment" to his fellow ANC members behind closed doors.

A few months ago, South Africa was downgraded to junk status and now we've been hit with a technical recession – there seems to be no break in sight for this country which we are still not sure on who actually runs it. So what do we do now? Recession means tough times, there are changes we need to make in order to not completely feel the effects of this crisis that is upon us and here are some things you could try.

Firstly, pay off any debts because owing money is never a good thing or something to brag about. Start with your local tuck shop and pay whatever outstanding balance you owe them from buying your daily loaf of bread or cigarettes to those chewy sweets that you won't find cheaper anywhere else - in fact, if you notice Chappies going for R2.00 and get only one in return instead of five for 0.50 cents then you know we are definitely in tough times.

Secondly, try to always be debt free and pay off your accounts when possible. This means stop opening more retail accounts. I know it sounds crazy to not buy some new clothes every week or month but think of the savings. Your "rags'' will have to do for now.

Thirdly, unemployment is high and many workers get retrenched because businesses tend to suffer during a recession but it's a good idea to create multiple income streams and with the internet around, it's even easier. If you have a talent or a few skills, you can simply market your skills online – companies could use your highly skilled individuals.

Lastly, Reduce your expenses as this could help tremendously, sit down with the family and explain to them that the takeout foods will have to be cut down or cease indefinitely. Also, make the right choices in the supermarket, sometimes you may have to sacrifice brands for generic products like buying some weird peanut butter that is more sticky than usual where you could use it to do some plastering around the house rather than buying your regular brand jar and that is also OK. This is the time to think smart because every penny counts.