When South Africa emerges from lockdown, consumers will face a very different economic reality to what they were used to just over a month ago.
The shutdown came soon after the country fell into a recession.
Not long after that Moody’s downgraded South Africa to sub-investment status, the last of the major ratings agencies to do so.
“What’s happening is unprecedented.
“It’s a perfect storm,” said Benay Sager, chief operating officer at DebtBusters.
Also read: Solidarity Fund distributes food parcels to over 250 000 families
He added that while consumers can’t do anything about the broader economy, they can use some of the remaining time in lockdown to take control of their own finances.
“If you are feeling a bit uneasy, you’re not alone.
“The current situation feels like an extended December period where you have to go almost eight weeks between pay cheques.
“For some consumers, this period might be even longer.
“It is important to take a few practical steps to help you stretch your money further,” he said.
Make your Rands go further
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- Count your cents and supplement your (reduced) income.
Now is the time to look for any spare money that may be stashed away.
Sit with your family and make sure to account for everything in all your bank accounts, cash you may have at home, prepaid phone accounts etcetera.
This may not amount to much, but there is also relief in the form of the unemployment insurance fund or UIF.
You can claim income from UIF if you or your company have been contributing.
Your employer can also claim from the Temporary Employer/Employee Relief Scheme if they are not an essential services provider and have lost revenue due to lockdown.
There are limits on what can be claimed, but every little bit helps.
Also read: Government to scale up welfare provision during lockdown and beyond
- Stop the impulse buying:
You may have seen others at the supermarket hoarding toilet paper or some other necessity.
South Africa has a strong food supply chain and almost all the food is produced locally so there is very little risk of shops running out of necessities.
Instead of spending R50 on toilet paper because others are buying it and you may not immediately need it, save the money or spend it on essential items you need now.
- Look for the bargains:
There are lots of bargains available as businesses, both local and international, are trying to protect market share or just get through the crisis.
For example, some companies deliver food or essential items for free.
Do your research and find these bargains.
- Review your budget:
Before the lockdown you may have made some assumptions that have now changed.
For example, you might have been expecting a salary increase or a bonus which you will now not be receiving.
By reviewing your monthly income and expenditure you’ll have a better idea of where you stand financially.
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