South African consumers spend their hard-earned money taking care of the costs of the ‘Big Four’ also known as fuel and transport, electricity, food, and interest rates.
Households in the country are now feeling the pinch of the rising cost of living following increases in the cost of fuel, electricity, and food.
The Pietermaritzburg Economic Justice & Dignity Group’s Household Affordability Index showed that the average cost of a household food basket for August 2023 is R5,124.34, while petrol increased by R1.71 per litre for both grades and diesel increased by R2.76 for 50 ppm and by R2.84 for 500 ppm.
John Manyike, head of financial education at Old Mutual, said that there is no doubt that most people have financial nightmares as they see the cost of living increasing and their budgets getting smaller.
Here are five ways you can stop the increases in the cost of living from having an impact on your finances.
Budget
Take a good look at your budget to see how you cut down on unnecessary expenses. Make sure that your budget can cover all of your expenses but also has room for savings.
According to Budget Insurance head Tyrone Lowther, a basic budget is one of the most underrated tools for gaining control of your finances, managing spending, saving, and avoiding debt.
Insurance
Contact your car insurer about reducing your insurance premiums if your car spends more time at your garage at home and less time on the road.
Work from home
Speak to your boss about cutting down the number of hours you spend working at the office and ask to work from home on certain days.
Car usage
Plan your trip to the office by leaving home early to beat the morning traffic or negotiating an early knock-off time to avoid traffic congestion in the afternoons. You should also plan your shopping trips better, doing all of your errands in a single trip, and taking it easy on the accelerator.
Shopping
Checking what grocery items are on promotion and buying those items in bulk. Consider doing online shopping and having your groceries delivered to you. Take advantage of rewards and loyalty programmes offered by retailers; they can offer consumers significant discounts on different items.
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