Clyde Mallinson, an independent energy analyst, said when the National Energy Regulator of SA (Nersa) announces draft electricity tariff increases for 2023, South Africans may have to tighten their purse strings.
This comes after the power utility asked for a 38% hike in the cost of electricity.
A possible increase in electricity costs coupled with rising interest rates and food prices, will leave South Africans struggling to make ends meet.
Here’s a look at how consumers can stretch their rands to manage the rising costs:
Monitor your spending
Monitoring your spending and tracking your expenses is an essential step in stretching your money. You can track your monthly spending by reviewing your banking transactions and seeing how you can reduce your spending on unnecessary expenses.
Christian Hugo, Solution Strategist for FNB Integrated Advice, said tracking your spending was a great way to see where your money was going and to draw attention to any possible unconscious spending.
Start your budget
Draw up a budget plan that takes into account your current and future income and expenses as well as the extra money you save by cutting down on your spending.
A budget will give you a clear overview of your monthly expenses and ensure that you are setting aside money for savings.
“When you budget, you know exactly where all your money goes, where you can make adjustments to save even small amounts, and also how to effectively save and leave enough money for unexpected expenses and emergencies,” said Sebastian Alexanderson, founder and debt Counsellor at National Debt Advisors.
The most important rule of having a budget is being motivated to continue budgeting, and sticking to your budget plan.
Shopping
Do your research on the monthly specials or discounts that retailers are offering. This will allow you to have a plan of where you are going so you can save on petrol instead of going shop to shop and never finding what you are looking for.
You will also have a clear idea of what you need to purchase and help you resist the temptation of buying unnecessary items. Online shopping is also a great way to avoid all of the temptations that you see in the shops with the added benefit of shopping from the comfort of your own home.
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