SOUTH African households’ debt-to-income ratio has decreased from 84.7 per cent to 74.4 per cent in the last ten years, but the ratio still remains high compared to the rates financial institutions consider in order to grant customers credit.
“Although certain debt can be financially beneficial to households in the long run, such as having a home loan or study loan, we should aim to develop an eagerness to save rather than create debt to spend,” said John October, the chief officer at online insurance and financial comparison website, Hippo.co.za.
As we all gear up to do our part and dedicate 67 minutes in commemoration of our late leader and freedom icon Nelson Mandela, the team at Hippo.co.za decided to provide South African consumers with quick tips on saving that take less than 67 minutes.
Here are some tips:
1. Review your finances once a week rather than monthly to stay on track of your budget and spending.
2. Create a weekly meal plan and corresponding shopping list to avoid overspending on takeaways and unnecessary snacks.
3. Invest in a good coffee flask and make your favourite brew at home every morning to take to work instead of buying from coffee shops.
4. If you are looking to purchase new items such as clothing or electronics, use your lunch hour to do research online to find bargains and best buys.
5. At your next cellphone contract upgrade, ask your service provider to adjust your package (call time, SMSes, data) to the lowest amounts needed based on your usage history.
6. Unplug electrical items not in use every morning to reduce phantom energy: the electricity drawn from appliances that are off but still plugged in. This can account for 15 per cent or more of electricity used.
7. Sign up for loyalty cards. This usually takes a few extra minutes at the store but can earn you discount points and save you money in future.
8. Shop around for the best insurance rates. Whether you are looking for car insurance, household insurance, life insurance, medical aid or funeral cover, make use of comparison websites such as Hippo.co.za.
Also Read:
What kids should know about money this Youth Month
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