BLOGGING THE VIEW: 5 quick ways to save money ahead of the triple threat of rising costs
Don't feel the pinch, get on top of your finances before costs rise even more!
The optimism of those welcoming in 2022 has been quickly doused by the realisation that living costs in South Africa are going to rise – once again.
Firstly, the Reserve Bank announced the repo rate was being hiked by 24 basis points to 4%. If you have a home loan, this means you’ll be paying more.
But even if you don’t own a house, the impact on your cost of living will still be an upward trajectory.
Secondly, the Department of Mineral Resources and Energy announced on Monday that petrol and diesel would be rising by 53c and 80c respectively, which it did on Wednesday.
Thirdly, Eskom has proposed an incredible tariff increase of around 20%, which – if passed – will bring about a spike in living costs from 1 April.
No matter who you are, this is going to impact your bottom line at the end of the month, which means now is the time to start cutting costs cleverly. Here are some simple tips…
Tip #1: Check your monthly expenses
Debit orders are often one of the biggest monthly expenses and we can get quite lazy about how much money is going off each month, and where it’s going. Now is the time to take a hard look at your debit orders and see what can be chopped. Car and home insurance, as well as cellphone charges, might be a necessity, but you could probably get discounted rates if you shop around a bit.
Tip #2: Find out about rewards programmes
Your bank, medical aid and retail outlets all have rewards programmes as a way to attract new customers and retain them. Take advantage of these! Contact your bank and brokers to ensure you’re getting the most out of your discounts and rewards programmes, and prioritise shopping at places that give you real value for your money.
Tip #3: Get energy efficient
Even if Eskom doesn’t get the 20% hike – which it well may – electricity is still going to cost you more in 2022. So, start being more energy conscious! Swap your light bulbs for energy-efficient bulbs, switch off lights and fans when you’re not in the room, and enjoy a summertime braai rather than cooking on the stove if it’s an option. Just a few little adjustments can go a long way.
Tip #4: Create a budget
I know, budgets…yawn! Actually, putting a number to your expenses makes you realise where you’re overspending. Get back to those student days when there was no credit card, it was what you had in the bank account and no more. Really assess how much you’re spending on living expenses and entertainment activities, and decide on a realistic number to spend. Then factor in the emergency fund. This should be put away into an account and not even looked at. This is not savings – this is emergency funds!
Tip #5: Spare change jar
This might make you unpopular with the car guards, but sometimes a visual savings is a great way to propel savings in other areas. Get a big, transparent jar (don’t spend excess money on this!) and start putting your change – R1, R2, R5 coins – in this rather than just leaving it in your wallet. You can keep this as a backup for any unexpected expenses, or you could decide on something fun to work towards at the end of the year.
Remember it’s so easy to get caught up in the debt cycle; buying something on credit and committing to pay it back at some later stage when you have more money – except you won’t. If you do have debt, pay it off as quickly as possible and start living within your means.
