With the prices of electricity, food and fuel on the rise, as well as increases in inflation and interest rates, South African consumers are feeling financially stretched.
Luckily, there are some small changes consumers can make to manage finances and spending and better handle the rising cost of living.
Here are some tips to help you cut down:
Live within your means
To live within your means it’s important to follow one of the golden rules of money management – spend less than you earn. Spending less than you earn ensures that you are not relying on debt to take care of your lifestyle.
Having a budget to account for all your monthly expenses helps you live within your means too.
Manage your exposure to credit
Rob Gwerengwe, CEO of FNB Middle Market, said that if people are smart about how they use and manage their credit, they can get more value out of it.
“This, however, starts with understanding why you need credit and what kind of credit is suitable for your needs. Whether it’s a credit card, overdraft, fusion or personal loan, each of the solutions offer different benefits and pricing considerations,” Gwerengwe said.
Plan for upcoming expenses
While consumers may be unable to predict changes in interest rates and fuel prices, other costs such as insurance premiums and school fees are normally communicated in advance. Therefore, it is vital that people factor in these changes when planning their finances.
Make use of loyalty and rewards programmes
Loyalty and rewards programmes offered by retailers can help consumers save money by providing discounts when they purchase products. Some retailers also allow consumers to redeem their points against their purchases.
Start saving
Justin Asher, head of Marketing & Strategy at upnup said that saving can seem impossible to people who have saved money.
Make sure you create space in your budget for savings and that you put aside the money meant for savings before you spend your money on anything else.
You can also use a money jar to save any coins that you find in the car or in your pocket and then add it up at the end of the year. You may be surprised at the amount of money that you have saved.
IOL Busines