Trimming the fat is now essential

The need to manage our budgets far better is something we have all had to address in recent months as the rising cost of food and high unemployment puts pressure on all households.

Salary cuts, enforced unpaid leave, job losses and a struggling economy, attributed largely but not solely to the lockdown forced on us due to the coronavirus, has forced everyone to tighten their belts.

With the peak expected to hit SA later this year, it’s not getting easier even though government lifted lockdown restrictions to Level 3 at the start of the month, opening many sectors that were previously closed. However, many are still not open for business.

An online survey conducted by research company Consulta says the financial impact of Covid-19 is set to have a long-term negative effect on consumers, and is likely to remain for many months. The survey also predicted “consumers would cut down spending on clothing, travel, fuel, hobbies, alcoholic beverages, entertainment, footwear, gym membership, health and beauty products”.It’s a tough one as people cut their costs at the expense of the economy, but trimming the fat is essential going forward.

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