Sat Jan 07 2023 11:43:26 GMT+0000 (Coordinated Universal Time) - QikTruck Media
The economic recession gripping the South African economy is grim. With the rise in unemployment rates and the cost of living, it’s becoming harder for families to make ends meet. The key to tackling financial challenges is to budget your income, and maximize savings. In this article, we’ll show you how to utilize budgeting techniques during an economic recession to ensure you have enough to cover your expenses and maintain some semblance of financial health.
The first step to budgeting during a recession is to minimize your unnecessary costs. Begin by identifying and cutting back on items that you don’t absolutely need. It’s a common mistake to keep spending on luxuries during a recession. Evaluating your lifestyle and creating a budget will help you identify costs that you can do without. For instance, if you habitually venture to fast food restaurants and coffee shops, these activities can easily be eliminated. During a recession, it’s important to prioritize your spending, and recognize that some luxuries must be cut back or eliminated.
Additionally, you should review contracts and subscriptions you have, such as phone and Internet plans, and ensure that you’re not overpaying for services. Consider canceling subscriptions for services that you may not be using and rescaling them for more economical options. Additionally, take advantage of promotional offers, specials and discounts – paying only for the most essential services. A reduction in monthly expenditure will go a long way in boosting your finances.
Another important budgeting technique to use during a recession is to ensure that you’re saving some money. Depending on your situation, you may want to set aside a certain portion of your income for savings. The recommended proportion is 10-20% of your income. You should also make sure to remain mindful that when your expenses are reduced, the amount that you allocate to savings should increase accordingly. Establishing a savings plan will increase the money you’re able to set aside.
Debt is a major, if not the biggest, contributor to financial distress during a recession, especially for those living paycheque to paycheque. Therefore, it’s necessary for you to make aggressive strategies for clearing debts. Due to the current economic climate, certain institutions may offer reduced interest rates or easier loan repayment terms, so it’s important to seek out such opportunities. The aim is to reduce the debt burden as much as possible. This means making regular payments, repaying debt with the highest interest rate, or asking creditors to restructure payments.
The South African Revenue Services (SARS) offers a range of tax credits, such as medical expense credits, tuition and school feestax credits, disability tax credits and work-related travel expense credits. SARS also offers tax incentives and allowances for people able to contribute to a retirement fund, and for those with dependents under 18. Taking advantage of these incentives has twofold benefits – it reduces your tax liabilities and provides you with more money to budget within your income. Additionally, various financial organisations in the country offer different small-business loan and grant programmes for those looking to start up a business.
Finally, it may be necessary to seek another revenue source in order to supplement your budget and allow you to save more. You can start by looking at side hustles – you can readily identify suitable freelance options online as well as get part-time jobs. Another option is to look for investment opportunities, such as stock or real estate markets. You should also recognize the potential to share your skills and knowledge with the world by monetizing your content.
At Qiktruck, we understand the difficulties South Africans face due to the current recession. We take the worry out of transporting business goods or personal items. Whether you’re a business looking to cut transport costs or an individual who needs to move items safely and securely from one place to another, we can provide an easy and reliable on-demand truck and a driver at an affordable cost. With our services, you don’t have to rent a truck, worry about concealed costs, or worry about employee hours.
Qiktruck is the perfect solution for customers looking to make the most of their budget during a recession. We make goods transportation stress-free and cost-effective, allowing customers to focus their efforts on the more important aspects of their business or personal goals. Contact us today for a consultation, and for more information about our goods transportation services.