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Winter can be a depressing time of the year as we often must face cold temperatures and rising costs as we try to keep our homes. This year is going to be particularly tough as South Africa and most of the rest of the world endures a cost-of-living crisis, due in part to the conflict in Ukraine.
Locally, we can expect a rise in fuel, gas, and food because of the fighting between Russia and Ukraine. This is because Russia contributes much of the world’s liquified gas and Ukraine is a major producer of wheat.
The conflict means that the price of liquified gas has gone up by an average 30% according to TymeBank and petrol has increased by more than 40% – going over R20 a litre for the first time. We’re paying more for electricity and transport too which according to TymeBank has gone up by 14% and 16.8% respectively.
Enduring such increases is not sustainable. It’s going to squeeze most household budgets, but there are things you can do to keep these costs reduced or to save money elsewhere. Here’s five things you can do to save on costs.
1. Revise your budget
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This can be a tedious thing to do but it’s so vital to do a proper budget, particularly if you’re struggling financially. It can give you a good insight into what you’re spending your money on and where you can cut back.
‘The best place to start is to relook at your spending on things that are not essential, such as entertainment, eating out or buying takeaways – before you buy something ask yourself if it is really a ‘must have’ or ‘nice to have’.
‘There are also practical things you can do: to save on electricity, keep the lights on only in areas that you are using, switch off your geyser during the day and only use your car for essential travel – opt for carpooling with colleagues to save on fuel costs,’ says Linda Appie head of marketing at TymeBank.
2. Cut your bank fees
When last did you look at how much you are paying your bank to transact? Do you know how much you’re paying your bank for your various accounts monthly or yearly? Doing the maths on this could shock you into action, but on the plus side it can save you money.
‘Spending a lot of money on bank fees is unnecessary and is an issue which can easily be solved. As an example, with TymeBank’s EveryDay account customers transacting at either Pick n Pay or Boxer pay no charges and most of TymeBank’s transactions are the lowest around,’ says Appie.
3. Reduce your reliance on energy
Try to conserve as much energy as you can. Switch off any appliances you’re not using and if you walk out a room, switch off the lists.
When it comes to switching off a geyser, there’s a bit of a debate as to whether this is a good or bad thing. Geysers require electricity to heat the water that’s contained within it. Switching it off will result in the water going cold and will require more energy to re-heat it when it’s switched on again.
Evaluate how you can save energy in your home and what works for you. Consider getting energy efficient appliances if you don’t already have them. If your budget is tight you don’t need to get them all at once.
4. Cut your grocery bill
Groceries are a major expense, and they just seem to be going up every month. However, there are some things you can do to curb your spending when it comes to food. Ester Ochse, product head: FNB Money Management recommends doing the following:
- Do a monthly shop for the non-perishables.
- Create a weekly menu, using the items you have in the cupboard and supplement with a few fresh items.
- Reduce your reliance on using the corner store. Ochse recommends getting only one or two things, as these are normally very expensive.
- Look out for specials, you can maybe buy multiple items at better prices.
5. Spend wisely and track it
Make sure you’re spending your money efficiently. Ochse points out that by spending smaller amounts on things like airtime it can quickly estimate to one big payment.
She explains: ‘If you buy R20 of airtime a day, it’s R140 a week or R560 per month. Rather look at your budget and see how much you want to spend on data and airtime, then look if it will not be cheaper to buy larger amount once off for more value or go on a contract. A quick way to keep track of your spending is to use a spending tracker like Track My Spend on the FNB App.’
These are just a few ways in which you can curb your spending and find the extra money you’d need to cover bills and other essential needs. It’s going to be a tough road ahead but with a few savvy tweaks to your spending and budgeting habits you can save more.
