It always feels like the longest month of the year – January – or, better known as Janu-worry. Since payday in December, many have spent their paychecks on festive gifts and celebrations, school uniforms and stationery, never mind normal day-to-day living expenses. It is rough out there right now! ENCA reported that “Consumers are under pressure from a cost-of-living crisis and low levels of economic growth, with eight in ten consumers saying they are feeling money stresses.”
To help you this month and all through the year, here are some useful money-saving tips.
Old Mutual has provided an insightful list, and here are their top money-saving guidelines:
- Draw up a monthly budget – make sure you have your fixed expenses in there – such as rent, water and electricity, school fees, petrol, etc. Then, add the other expenses which may arise during the month.
- Track this monthly budget using a spreadsheet.
- Put your savings away as soon as you get paid.
- Limit what you spend on your credit cards.
- Lower your banking charges and fees by switching to a “low-cost account”.
- Cook at home – limit the amount you spend on dining out or on takeaway meals.
- Search for bargains before you leave home to do your shopping. Compare prices between various stores on the same item.
- Stick to your shopping list – do not buy what you don’t really need.
- Cancel your gym membership – exercise at home to save money.
- Sign up for free customer rewards programmes to save on purchases.
If you are interested in more impressive hints on saving cash – Business Tech has published a great list here, sorted by category.
Here are some valuable items on the list:
When grocery shopping, buy generic brands in bulk and cook at home more often. You can downsize your living space at home, air dry your clothing (so do not use the tumble drier) and install energy-efficient light bulbs.
When it comes to transport, carpool if you can, and review and try to get better insurance rates at least once a year.
Healthcare tips include using generic medications and exercising regularly to maintain your health.
Regarding your banking, pay your bills on time to avoid paying late fees and try to refrain from withdrawing cash at ATMs.
Generally, you can sell things you no longer use and ensure you address your needs above your wants.
Times are tough for many people, and saving money where you can is a good idea. “South African Reward Association member Kirk Kruger said South Africans are among the most indebted people in the world, with as much as 73% of disposable household income servicing debt repayments.”
Baneng Naape, Associate Economist at The Competition Tribunal of South Africa, explained in an exclusive interview that our salaries are decreasing annually. He explained that if you receive a 5% salary increase, and “the average inflation rate for that year is 7%. In real terms, your salary has decreased by 2%. You will be spending more on the same set of expenses or bills.”
He also advised that investing in a fixed deposit account with a bank and reducing takeaways are good ways to save money. “If there’s anything that you are spending on which you believe you are not deriving much economic value from, then I’d say cut it off.”
Why does this matter? The cost of living has escalated for many people, and it is certainly useful to have some tips on saving money each month and making a habit of doing so.
Image accreditation: maitree rimthong on Pexels
