The ability of South Africans to keep up with the rising cost of living was outpaced leading up to the end of 2022, according to Bertie Nel, head of financial planning and advice at Momentum.
Himal Parbhoo, CEO of FNB Retail Cash Investments, said that inflation coupled with interest rate increases are putting a strain on the pockets of South Africans and their households.
Here are five tips to help you live within your means:
1. Plan your week
People should plan their week by looking at their activities for the week, such as shopping for the household or travelling to the office. Some retail stores will have discounts on certain days, which people should take note of so they can save money.
By taking these measures, you will manage your time properly, and you can also start saving.
2. Check your budget
Go through your weekly or monthly budget and identify how much you can afford, and how much you can save based on your budget. There are tools available online such as budget templates that can help people create their own budgets. People can also download apps to help them budget.
“When you budget, you know exactly where all your money goes, where you can make adjustments to save even small amounts, and also how to effectively save and leave enough money for unexpected expenses and emergencies,” said Sebastian Alexanderson, Founder and Debt Counsellor at National Debt Advisors (NDA).
3. Shopping online
Using online shopping sites and online delivery services can help you save on fuel as well as help you pick up a few bargains that could help you save. The added advantage is that it is easier to stick to a list when shopping and people can make use of discounts exclusive to online shopping.
4. Consider having a savings account
According to Parbhoo, people need to look at savings vehicles that can help them save or invest.
“Short-term savings pockets help you contribute monthly through either seven days or 32 days’ notice account or fixed deposit. Having these savings accounts will help you better manage any emergencies that might creep in as life happens.”
5. Save your change
Save your spare change in a glass jar or box. Then, at the end of every month, every three months or at the end of the year, depending on your preference, open your savings box or jar to see how much you have saved.
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