CityPress - - Busi­ness - TIPS TO FOL­LOW

1Build a buf­fer into your bud­get. When in­ter­est rates in­crease, it af­fects your debt re­pay­ments. You can ex­pect debt such as your home loan, ve­hi­cle fi­nance, per­sonal loans and credit cards to in­crease. It makes sense to go through your bud­get now and iden­tify ar­eas where you can re­duce your spend­ing so that you are able to deal with in­ter­est rate in­creases.

2Pay off your debt as quickly as pos­si­ble. Pri­ori­tise your debts and try to pay off the higher in­ter­est-bear­ing debts, such as credit and store cards, as quickly as pos­si­ble. If you find that the rate in­crease or fu­ture in­creases down the line af­fect your abil­ity to meet your debt re­pay­ments, con­tact your cred­i­tor and make al­ter­na­tive pay­ment ar­range­ments. Most im­por­tantly, try not to in­cur more debt when you have suc­ceeded in pay­ing your cur­rent debts off.

3Get smart with house­hold bills. Your daily shop­ping is where you are likely to feel the ef­fects of in­fla­tion the most. Com­pare the prices of dif­fer­ent prod­ucts in­stead of stick­ing to one brand. When you are mak­ing com­par­isons, take into ac­count the weight and size of the prod­uct you are buy­ing, and not just the price. Re­mem­ber that big­ger is not al­ways bet­ter. For ex­am­ple, buy­ing two packs of nine toi­let rolls might be cheaper than buy­ing one pack of 18 toi­let rolls.

4Save salary in­creases. When you re­ceive a salary in­crease each year, it is usu­ally linked to in­fla­tion, which means you are not re­ally re­ceiv­ing more money. Your in­crease may sim­ply be enough to en­able you to meet your in­creased ex­penses. The last thing you should do is take on more ex­penses or splurge on new pur­chases. Sit tight on the “ex­tra” money you now have; you’re go­ing to need it for ex­ist­ing costs. Set up an emer­gency fund. Have an emer­gency sav­ings fund that you can dip into when the need arises. You can also use these funds when you are feel­ing the pinch of in­fla­tion. But make sure that you are able to re­plen­ish your emer­gency fund as soon as pos­si­ble after you use it. Cut elec­tric­ity costs. Cut down on elec­tric­ity costs by im­ple­ment­ing sav­ings mea­sures such as us­ing en­ergy-ef­fi­cient light bulbs, in­stalling a so­lar heat­ing sys­tem or us­ing a timer on your geyser.

Cut fuel costs.

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