Rising inflation has an tremendous impact on the cost of living in South Africa.
Increases in the cost of food, petrol and utilities plus interest rates hikes on home loans, car repayments and debt has resulted in people looking at different ways to save money.
Natashia Janse van Rensburg, Finance Manager at Sanlam Indie, said: It’s important to remember that we have been through times like these before and during the pandemic time overcame many financial challenges.”
“The key is not to panic. There are a few costs that you do control and can refrain from cutting important essentials like medical aid and long-term insurance or policies.”
Here are four things that might give people a little more breathing room during tough financial times:
1. Make sure that your spending is in line with your monthly budget
Drafting a three-to-six-month budget will allow you to regain control of your finances. This will help you keep an eye on your expenses as well as start a savings that can help you in the future.
“Where you have funds left, instead of keeping it in your bank account, move it to a short-term savings account, out of sight, out of mind. Having this savings account will give you future peace of mind, as rainy days do come,” Janse van Rensburg said.
According to Tyrone Lowther, Head of Budget Insurance, even the smallest adjustments in a number of areas of your budget can add up to significant savings.
2. Negotiate your rent payments
Like most South Africans, rent is probably the biggest monthly expense in a person’s budget.
It is important that you study the rentals in your area with similar amenities before you call your landlord. You want to show your landlord that you have compared apples with apples.
If your rent is much higher than what you could pay in a different area, you will have more power when you go to talk your landlord about your rent.
If you are a good tenant, chances are your landlord would not want to lose you, and you have nothing to lose by trying. Should this option not work, perhaps consider moving in the future, keeping in mind the cost saving benefit of the move.
3. Reduce grocery and food expenses
With soaring food prices it is essential that you find more cost-effective ways of shopping.
You can be smart with your shopping by comparing the prices of your household groceries among different supermarkets and factory shops to make sure that you get the best deal.
Planning your weekly meals can help you avoid the temptation of buying lunch when you are at work. With loadshedding, be smart and add meals that can be ready in 15 minutes or less on your grocery list instead of buying takeaways.
Another way that you can be smart when shopping for groceries is bulk-buying non-perishable items. According to South African retailer Makro, bulk-buying a simple way for people to save money while stocking up their household pantries.
4. Be mindful when it comes to entertainment costs
It’s okay to enjoy going out to the movies or watching a theatre show but make sure that you are not overspending on entertainment.
You don’t need to have six different music streaming services or go to every concert. Instead of one or two shows or streaming services look for the ones that you really enjoy and stick to those. These tips can be carried over into your other subscriptions like gyms and magazines.
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