Sat Jan 07 2023 11:43:26 GMT+0000 (Coordinated Universal Time) - QikTruck Media
The economic downturn brought on by the COVID-19 pandemic has been unprecedented. In South Africa, economists have predicted that the economy could contract by as much as 7.2%. This means that on average people’s salaries, savings, and investments have taken a huge dip. Reducing expenses can be a key way to navigate tough times.
Saving money is a priority for many South African families. Here are several strategies for staying afloat including short-term solutions as well as more long-term saving habits.
The South African government has announced financial relief packages to assist citizens affected by the pandemic. These include the Tax Relief initiative, COVID-19 Social Relief of Distress grant, the Small and Medium-Sized Enterprises Relief Scheme, and the SASSA UWP relief program. These programs can provide immediate relief to those struggling to make ends meet.
It’s important to understand your financial situation and create a budget that reflects it. Write out your fixed expenses such as rent, groceries, and loan repayments. Additionally, write out any less regular costs such as gym memberships, car payments, and insurance premiums. Add up all the costs and compare them to your income. This will tell you whether you have negative cash flow or are managing to make ends meet. You can use a budget calculator, such as this one from Absa, to help you create an accurate budget.
Once you have identified your total expenses, it’s time to get creative. Can you find different ways to reduce your fixed costs? There are a few options for South Africans to consider.
Your budget should be realistic and match your current income levels. To reach that point, you may need to start cutting non-essential expenses. This includes anything from subscription services and streaming platforms to luxury items such as vacations. Consider cutting down on eating out or reducing your mobile data plan. You could also move to a cheaper gym or opt for takeaways rather than dining in.
You can start carrying out an audit of your expenses. Look back over your last three months’ bank statements and list out all the expenses. This will give you a good overview of where your money is being spent. Set yourself a target to reduce each category of expense by 25%. That way, you will quickly identify target areas where you can start saving.
Next, you should review essential expenses such as rent, groceries, and transport. Can you reduce any of these costs? South African landlords are now required to offer tenants payment plans for rent deferrals. You can also use your budget to compare prices for groceries, utilities, and more. Finally, you can use comparison websites to compare the prices of insurance, phone plans, and loans.
We recommend shopping around to compare different prices. This could result in hundreds of Rand in savings for you each month. It may take a bit of time and effort but the rewards will be worth it.
Most of us have ingrained habits which can affect our savings. It’s often these areas which begin to rack up costs without us noticing. Little things like switching off lights not being used or changing the temperature settings on your air conditioner can save you money. Even reducing your coffee intake or stopping smoking can have a big impact on your savings.
You can also explore home maintenance or other DIY activities. For example, buy basic materials and complete jobs like painting or gardening yourself. This could save you money on expensive contractors.
Learning to live within your budget and save money takes practice. Even when things begin to improve economically, continue to stay on top of your finances. Financial security is the key to a successful life and a great basis to build future investments.
Investments and savings plans require discipline and some research. South African families may benefit from using low-cost investment platforms such as Easy Equities and Money Smart. These platforms charge lower fees when compared to traditional options.
Finally, if you’re planning to switch banks or investment companies, be sure to research the hidden bank fees associated with each, as well as withdrawal rates. Some low-cost options may not offer certain features, such as free withdrawals for certain types of banking.
Strategies that can help South African families look down on their expenses will help them stay afloat during these tough times. Times like this present an opportunity to carefully manage and reduce expenses, while still taking the required steps towards financial security.
At Qiktruck, we understand the importance of saving money. That’s why we provide an affordable and convenient solution for businesses and individuals to send and receive goods. With our network of reliable truck owners and drivers, you can save on delivery and transportation expenses-especially during challenging times.
Qiktruck works with businesses and individuals to deliver their goods safely and on-time. Our process is easy and efficient. Simply input the pickup and drop off address and wait for a