Sat Jan 07 2023 11:43:26 GMT+0000 (Coordinated Universal Time) - QikTruck Media
Job uncertainty, rising debt levels, and high expenses costs - South Africa is no stranger to financial hardship. In this difficult economic climate, the importance of managing money during a recession can’t be overstated. As a result, it is important to plan ahead and consider responsible ways to manage your money and save for the future during a recession.
Whether you’re a student, entrepreneur or already have a steady job – everyone should consider the importance of financial planning and creating a realistic budget. As Capitec Bank states, the four main financial roles you can focus on during a recession are budgeting, saving, investing and protecting. While there is no one-size-fits-all approach, here are five tips on how to save and manage your money during a recession.
Making a budget allows you to track your expenses and income and evaluate areas where you can cut back on spending.
Take note of your monthly expenses, fixed expenses such as home loans, rent, and utility bills, as well as variable expenses such as food, entertainment and transport. It is wise not to ignore your impulse spending – tracking those daily coffees and snacks could save you a fortune in the long run.
Creating a budget allows you to see where you are overspending and will guide you in order to help you reach your financial goals.
Put money into a savings account that you will use for emergencies only. A good rule of thumb is to save up an amount that can cover at least 8 to 12 months of your basic expenses. This will give you peace of mind, knowing that you have a safety net in case of a financial emergency.
Sometimes the answer to our financial worries can be right in front of us. Consider ways to cutbacks on costs, property- and asset-wise, that won’t have a major impact on your quality of life. This could mean downgrading your car, getting a roommate to share expenses or even taking on freelancing work.
Recessions can provide an opportunity to upskill. Investing in yourself will allow you to stay competitive and stand out from the crowd. Another benefit of investing in yourself is that it usually pays off in the end. You’ll be shocked by the amount of amazing online courses available that could increase your chances of promotion or future job opportunities.
Debt can be hard to manage, especially during a recession. However, by prioritising your debt repayments, making higher payments when your own personal budget allows it, and even consolidating debts - you can make efforts to manage it more effectively. Try to begin by tackling the debt with the highest interest rate first and work your way down.
The current economic downturn has put a strain on everyone’s finances. That is why QikTruck was created to address a problem that people and businesses face in times of financial uncertainty. QikTruck is an on-demand truck and driver hire service that helps people and businesses move effortlessly. With a simple online booking process, you can rent a truck and driver swiftly and at a competitive rate. Whether you need to move personal belonging or business stock, QikTruck makes the entire process easy and affordable for all.
As you look for ways to save during a recession, consider using QikTruck’s on-demand service. By helping businesses and individuals manage financial commitments, QikTruck will be with you every step of your journey.
By following these tips for managing your money during a recession, you can put yourself on the path to financial stability and security. While planning for financial stability during a recession is important, taking measures to protect your assets and future against rising debt levels is equally essential. Although the current economic climate is difficult, it is possible to take positive steps to secure your finances and make sure you reach your financial goals.