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How will we get through a winter of rolling blackouts in the current economic climate? The answer is by sticking to a budget. The problem is millions of South Africans already struggle to get to the end of the month, without the additional expenses that come in winter.
South Africans struggle to keep up with their monthly expenses and in recent months it has become almost impossible for most households to balance their income and expenses. Rising food prices, skyrocketing electricity and fuel prices and interest rate hikes added thousands of rands to home and car loans and most people have reached the end of their financial rope.
This is especially true when it comes to planning their monthly budgets. For most of us it means hoping for the best and for many credit has become a lifeline to get through each month.
“It may seem impossible to stretch your budget even one cent further, when each one has been accounted for already,” says Neil Roets, CEO of Debt Rescue. “Yet, there are still ways to stretch that budget, regardless of the relentless cost of living increases. The long and the short of it is that it has never been more important than now to get creative and dig deeper when it comes to our financial planning.”
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The latest Household Affordability Index conducted by the Pietermaritzburg Economic Justice and Dignity group shows that the country’s food prices remain at elevated levels, with warnings that the pressure at the tills will not ease anytime soon. With this in mind, South Africans need to adopt a do-or-die approach to their finances.
According to the data for April, the average cost of the Household Food Basket hit over R5 000 for the first time at R5,023.95. Month-on-month, the average cost of the basket increased by R57.75 (1.2%) and the average cost to feed a child a basic nutritious diet increased by R17.43 or 2.0% per month.
“This is devastating news for the 30.4 million people who live below the country’s upper-bound poverty line of R1 417 per month, not to mention the 13.8 million currently living below the food poverty line of R663 per month,” Roets says.
The winter months present a specific set of challenges that will test the mettle of South Africans from all walks of life, as they struggle to navigate rolling blackouts and tight economic conditions, but there are some budget-friendly strategies that can assist many households.
Roets believes that one of the most effective ways to save money is on your monthly grocery bill – and you can do this without sacrificing nutrition. “You can buy staple foods that are nutritious but not expensive and maintain a healthy eating lifestyle, while still living within your means. It may not be the lifestyle you are accustomed to, but it can keep the wolf from the door.”
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He has this advice for consumers:
Roets points out that rice, beans and other grains and legumes are a great source of protein, fibre and other essential nutrients. You can add pulses, such as lentils, to curries and stews to bulk up the protein element. These options are cheap, delicious and have a multitude of health benefits and make a little go a longer way.
“There are staple foods that are still affordable and can be bought in bulk, which will save you money in the long run,” he says.
He also advises consumers to choose fresh fruits and vegetables that are in season to save money. Seasonal produce is often cheaper than out-of-season produce, while it is also fresher and has more flavour.
“The price of bananas, oranges and apples has seen a considerable decrease in April and therefore it makes sense to include them on the grocery list. You can also try to buy frozen fruits and vegetables, which can be stored for longer periods.”
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Many people also planted food gardens in their backyards and if you are one of them, you can trade produce with your neighbours and save hundreds of rands in the process.
Meat can be expensive, but if you have the means to buy it in bulk and freeze it, you can save money and have it on hand whenever you need it. You can also try buying cheaper cuts of meat, such as chicken breasts and wings or beef chuck, which can be just as flavourful and nutritious as more expensive cuts. Adding these to vegetable soups not only enhances the taste, but also provides protein, Roets says.
It is also important to plan your meals in advance to ensure you buy only what you need and avoid wasting food. This will save you money and ensure that you always have healthy meals on hand. With load shedding now part of the daily lives of South Africans, there is an added layer of planning to contend with for the foreseeable future.
Roets gest back to the most important thing to do: budget, budget, budget. “This has never been more important. With fuel price increases and electricity hikes affecting the entire nation, it is necessary to know exactly what is going on in your personal finances.”
Even drawing up a simple spreadsheet showing income and expenses will provide a realistic picture of where you can cut expenses and make changes.
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