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Editorial: Reorganise Your Finances To Become Financially Stable

Exercise personal financial performance (PFM). Easier said than done isn’t it!

Former governor of the Reserve Bank of Fiji, Savenaca Narube.

Exercise personal financial performance (PFM).

Easier said than done isn’t it!

But that’s the most practical advice and best method to cushion consumers against the increase in Value Added Tax (VAT), says economist, politician and for­mer Governor of the Reserve Bank of Fiji, Savenaca Narube.

VAT increases from 9 per cent to 15 per cent starting today as outlined in the 2023-2024 National Budget.

Mr Narube is of the belief that 99 per cent of people do not do PFM or are unaware of it and how to begin.

And while PFM is seen as a budgeting tool, it goes beyond that.

It can help one to come from being in a state of pov­erty to becoming financially sustainable.

It can also impact our lifestyle and decisions in a better way.

Having the ability to make sound financial deci­sions can empower and create opportunities for in­vestments and increased savings.

How many of us thrive in the guilty pleasure of just spending a little more, or worse still, a lot more, than is necessary?

We’ve fallen in that category more often that not. But with VAT increasing by six per cent more, adopt­ing a culture of budgeting and forward-thinking can help improve your financial status.

A little goes a long way and saving even a few cents at a time, cutting back on groceries by removing the ones that you don’t need will make all the difference.

Additionally, revitalising that home garden more than a year after COVID-19 can do wonders on your calculator.

Mr Narube noted the following PFM steps:

  1. Determine your revenue and look for ways to earn more. Chase up those that owe you money.
  2. Determine how much you want to save. It does not matter how small this amount is.
  3. Compute the total amount you can spend.
  4. List down spending that cannot be avoided like rent, education, water, power, etc
  5. Find ways to spend less on food by reducing quan­tities and growing your own
  6. Cut out all wastage including grog, cigarettes and kalavata (social gathering uniform).

Another important factor to take note of is increas­ing knowledge in financial literacy.

Without it, one cannot mitigate the risks and would soon succumb to financial loss.

Mitigating the impacts of the VAT increase through personal financial management offers numerous benefits.

Not only does it provide individuals with a greater sense of control over their financial destiny, but it also enhances overall financial wellbeing, promotes responsible spending habits and fosters long-term fi­nancial security.


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