Rands and Sense
Stay winning against financial woes
Asante Lala
Getting some advice to start your year well is easier said than done with South Africa’s current economic milieu. Challenges of income instability brought by the country’s failure to maintain its entities has led to household frustrations. Recent inevitable electricity blackouts, inflation, high rate of unemployment among others, makes it difficult to make sense around the rands.
These strenuous and uncertain circumstances are forcing us to think creatively about how we manage our finances and consider other resources to cater for the present moment and unknown future. The question to ask ourselves is how do we make each rand count and go a little further during this time?
Speaking with Business News, Dhashni Naidoo, FNB Consumer Education Programme Manager unpacked some tips on how to stretch your Rands and cents during this time.
1. Manage your resources
– Review your budget by assessing what it is that you absolutely need. For example, prioritise necessities such as food, electricity, water, mobile airtime and data. Avoid spending on luxury items that you do not necessarily need i.e. buying a brand-new car or a top of the range smartphone, or branded clothing. Reviewing your budget will help you to identify opportunities to make reductions in spending, reallocate your spending and save some money.
2. Managing debt
– Paying off debt sooner will save you money. If you can still afford to honour your credit obligations, pay a little more toward them. Especially with the reduced interest rate, a little more toward your debt can reduce your payment terms and you can finish paying off your debt quicker. In a case where you have had a loss or reduction in income but have debts to repay, contact your credit providers immediately to seek guidance and assistance.
3. Readjust your budget
– Changes in our day to day lives has resulted in changes to our spending patterns. This therefore is a good reason to look at our budget with a different lens or new perspective. Reduce costs wherever possible, both on needs and wants. You might not be able to change some fixed expenses like rent, but you could look at reducing expenditure on variable expenses such as transport, electricity and food. If your income has been affected or reduced during this time and you are struggling to meet your financial commitments, like insurance, contact your service providers to see if you can reduce the cover(s), which might reduce the premiums and free up some cash. It’s not advisable to cancel policies.
4. Maximise on your loyalty programmes or rewards
–Most consumers have a number of loyalty programmes with cashback rewards or discounts on retail shopping. Use your loyalty rewards to cover some of your daily expenses or get discounted prices.