‘He who buys what he does not need, steals from himself’– Swedish Proverb
- There is no doubt that 2021 was a financial nightmare for a lot of South Africans. Fuel, electricity, and food prices skyrocketed.
- The bad news is that this trend is expected to continue into 2022. Retailers are simply passing on their business costs to the consumers to bear.
- It is estimated that those who manage to hold on to their jobs and even manage to get salary increases will be not even likely to be able to keep pace with the cost of living.
- It is time to fasten your financial seat belts – and we have provided you with some helpful tips that can help you to save as much as you can to weather the storm.
The stats don’t predict a wonderful 2022
Between 2020 and 2021, 81% of South Africans who experienced financial loss used their savings to help out. 19% had to borrow from friends and family. 59% of respondents indicated that they had reduced restaurant outings as well as eating takeaways. With the start of 2022, middle-income homes have no optimism about their household finances going forward – that’s what the latest Consumer Confidence Index (CCI) from the Bureau for Economic Research (BER) shows. “The alarming decline in formal sector employment during the second quarter – a drop of 375,000, or 3.5% quarter-on-quarter – in all likelihood hit middle-income households the hardest” says FNB economist, Siphamandla Mkhwanazi. Not to mention the violent looting that ravaged businesses in July 2021 and exacerbated employment prospects drastically.
Here are useful financial tips to weather the storm
Be smart with your car
- Service your car regularly, making use of your loyalty programme so that you can earn points for the litres of fuel you buy.
- For instance, fill up at the BP fuel stations and use your Pick ‘n Pay SmartShoppper card.
Don’t rush into the grocer shop at the end of the day when you are hungry
- It will just encourage you to buy convenience foods that are more expensive and less healthy.
Start buying less expensive brands and compare prices
- Bear in mind that the grocer-stores usually pack their most popular stuff with the higher prices at eye level.
- Don’t just draw out cash unnecessarily with extra buying in mind.
Beneficial banking
- Use your bank’s network ATMs – this will save on withdrawal charges.
- Download your bank’s app and save time and money.
Start a side hustle
- You can try to start your own business to increase your income, find a second part-time job or look at one of the many ways to make money online.
If you can, try and increase the monthly repayments on your bond
- This will help you to reduce the term as well as the interest you pay over time.
Using data
- We all know how much we need data, which plays a huge role in our lives and our day-to-day expenditures.
- Remember to use Wi-Fi whenever and wherever possible at legitimate, secure sources.
- Try to update apps using Wi-Fi only and disable any automatic app refreshing. Check out data-saving options in your app settings.
Electricity
- Use energy- and water-saving shower heads – they help to reduce the amount of water that gets heated up.
- Opt for cooler heat settings on your washing machine and your dishwasher.
- Choose energy-efficient light bulbs and heaters.
- Use only lights that you need - not just to look cheery.
- Turn down the geyser thermostat.
Insurance quotes
- It might be a good time of the year to check out new insurance quotes. With insurance, remember that the cheapest is not always the best.
- Choose carefully that your needs are covered and that you are not wasting money on unnecessary insurance and items.
- Always read the terms and conditions to ensure you are sufficiently covered should you experience robbery or loss.
Entertainment money
- Everyone loves entertainment. But are you still paying gym fees, but hardly ever go?
- Maybe your music subscriptions are costing you a fortune, or eating out, or ordering at the work canteen because you don’t want to make your own lunch – all these can save you quite a bit.
- What about cutting back on cell phone contracts, TV subscriptions and domestic travel?
