“The way prices are rising; the good old days are last week.”
~ Les Dawson
As inflation rises, everything else follows suit. You only have to walk into your local grocery store to see how the prices have changed, drastically. Not all households will be affected the same, but one thing will stand true – every household should make an effort to work better with their money going forward.
We know that old habits die hard. But old negative spending habits will only leave you in a worse off situation.
Today we are going to give you 3 price hike tips to reduce:
- The cost of groceries
- The cost of petrol
- The cost of electricity
And finally, we will take a look at how you can build a budget around these price hikes.
To ensure that you have all the information you need to assist you in keeping your head and finances above these rising prices, let’s dive right in…
Quick Tips to Cut Grocery Shopping Costs
The best way to cut costs is to always work with a “researched” shopping list. What do we mean by that? A list that was compiled throughout the week or month based around current specials available and any meals you can plan based around any specials.
Almost every newspaper and major chain store in South Africa has free saving advertisements.
Most grocery stores usually have them on a display rack at the door. Next time you go shopping, grab the offers and start planning your next shop. It is imperative that you get the most value for your money while prices are so high. If you see that you need coffee, but the coffee is only on special on Saturday, put money aside and only go in to buy your coffee.
When we shop with store specials and a “researched” shopping list, it makes it easier to only buy what is on the list and what you have budgeted for.
The long-term benefits of learning to shop this way, means that you will be saving more and experiencing far less financial stress.
For more tips on saving on the cost of food, check out: 8 Tips To Save On Your Groceries
Quick Tips to Cut Electricity Costs
Electricity is up again.
To make sure that by month end your bill does not skyrocket, here are some tips to help you lower those electricity bills:
- Putting a blanket around the geyser to keep it warmer.
- Install a timer on your geyser.
- Switch off the lights that you are not using.
- Braai more often by using an outside fire pit or gas braai.
- Use a flask of coffee to refill instead of boiling the kettle for another cup.
- Keep lights off during the
For more tips check out: 4 Electricity Saving Hacks You Need to Know
Quick Tips to Cut Fuel Costs
The petrol price is really hurting everyone’s pocket, even those with the most economical of tanks.
If you can carpool to work, then it’s a brilliant idea to pitch together petrol money with other colleagues and alternate between using different cars to minimise wear and tear.
If you live close to the shops, rather walk to the shop than drive short distances. If you do not live close to the shops, then choosing a shopping centre that caters for all your shopping needs will be more economical than driving to separate shopping centres and using unnecessary petrol.
For more tips check out: Top 10 petrol saving hacks
Finally… The Budget
Having a budget and sticking to it is now more important than ever. If you have not started budgeting yet, then you need to start right now.
Before we break down the simple aspects of budgeting, it must be noted that budgeting requires willpower. You need to tell yourself that you will stick to that budget no matter what item you see or who asks you for financial aid. If it isn’t calculated into the budget, then it’s a ‘no’!
Your budget needs to have 4 categories:
- Income:
These are finances which you can rely on every month. It can be any income stream if it is the same amount each month.
- Expenses:
Fixed Expenses: These expenses are paid every month and remain the same amount, i.e., School fees, Rent etc.
Variable Expenses: Variable expenses are expenses which can change such as food, petrol and electricity. This can also include unforeseen expenses.
Debt:
Any agreements made with Credit Providers. These are home loans, personal loans, overdrafts etc.
- Savings:
The rule of thumb is to save 10% of your monthly earnings. Place your money into a fixed term savings account with a high interest rate. The repo rate increase will now boost your savings much faster than before. Remember that having an emergency savings fund now is more important than ever.
Your expenses need to be carefully considered when creating a budget. Once you’ve set a budget for the month, you need to stick to it.
To get a more detailed overview of how you should split your salary, check out: Cracking The SAVING Code.
It is getting tougher on the financial front. We need to be more careful with our spending habits and enforce strict budgets on our income. However, sometimes, even with the best plans in place there are times when it may be difficult to make it. It is in these times that it is more than okay to ask for assistance, because help is available right now.
Debt Rescue is the #1 debt counsellor in South Africa. We have helped thousands of consumers take control of their finances through the debt review process. Debt review will help you reduce your monthly debt repayments and help make monthly household expenses more affordable.