South Africans need to brace themselves for tough financial times ahead. With the weakening Rand and higher costs of living, more people are finding it harder to keep their heads above water. Salary increases are not on par with rising inflation, making it much harder for people to afford basic necessities.
While this isn’t the most exciting news, there are ways to work around this challenge.
With some self-discipline and a spending plan, South Africans can tighten the belt and stay afloat. It’s important to create a spending plan to control your expenditure and get out of debt.
You should also avoid consuming more than you need.
Tips on how to tighten the belt in tough financial times:
Create a monthly budget and get the whole family involved. Assess your budget thoroughly, so you can see where you can make more savings.
Switch to a prepaid cellphone instead of a contract. By using a prepaid cellphone you may be better able to control your spending.
Switch to fluorescent lighting throughout your home. These bulbs are more energy-efficient, meaning that they consume less electricity- saving you thousands of Rands in the process.
Reduce your debt. Make sure that you pay your credit card balances off at the end of every month. If you have any long term loans, find ways to make larger payments, to reduce the amount of interest you are paying off. Avoid accumulating new debt in the process as well.
Cut your spending. If you spend a lot of money on fast food every week, or you have a DSTV contract, but you hardly watch TV, it would be a good idea to cut these expenses. Assess your budget and reduce spending on luxury items to tighten the belt in tough financial times.