Nine ways to save in tough times
The price of petrol increases this week and South Africans are under increasing pressure to make ends meet.
In September, petrol prices are seen rising 59 cents a litre, diesel by 56 cents a litre and electricity tariffs up over 20%. And SA consumers remain under tremendous pressure to clear debt.
Budget Insurance’s Susan Steward shares a few tips on balancing budgets.
1. First, get rid of debt
Go through your statements and pay off outstanding debt or strategise a smart budget plan to make the necessary payments.
2. Cut the right costs
Can you afford not to be insured? Weighing your insurance options according to your needs and speaking to the right people, saves you money and stress.
3. Let go of excess
Try reprioritising your needs and wants list to avoid having to pay for wants and sacrificing family healthcare and education in the long run. 4. Remember your saving goals Set up a monthly debit order to an investment account or open a tax-free savings account; increase your pension fund contribution and maybe request the 13th cheque option from your employer.
5. Cover for a rainy day
The amount you save towards an emergency fund should ideally cover three to six months’ living expenses. Start by putting aside R250 a week, for example.
6. Track your spending
Keep track of expenses in your statements, establish where unnecessary spending goes, and find a pattern to re-strategise saving methods.
7. Phase out outdated fees
You could be paying subscription fees for magazines, gym or a bank account you don’t use. End subscriptions and use the money more efficiently.
8. Payments that don’t reap rewards
Read the fine print/terms and conditions for gaining loyalty points from reward programmes. You could be overspending for smaller returns.
9. Know the money lingo
Research and seek advice on the best methods to save money and make it go further. Understanding investments, pension funds and the best account to save and spend can take you a long way.