South Africa is burdened with the issue of having a non-existent savings culture. The youth, those under the age of 35, have been weighed down by the inability to save and due to the fact that they constitute 77% of the population, the growth and development of South Africa’s economy is impacted. According to Ian […]
28 November 2012
In South Africa, we have a poor savings culture, which will mean we will have to work for longer or retire poor, as we are living longer. Households that are considered affluent but certainly not rich are paying higher tax contributions and possible wages freezes and below inflation rises have left previously financially comfortable families suddenly feeling squeezed.
If this sounds like a situation you can identify with then it is time to start streamlining your household spending.
1. Cut the price of your shopping
If you are relatively financially comfortable you may want to switch to cheaper grocery stores and brands – you may even be surprised by the quality of the cheaper brands! By simply switching supermarkets you are able to instantly save money.
It has been claimed that by doing your research on which supermarket is cheaper you can save on average 10-15% of your shopping bill. This amount quickly adds up, as this is equivalent to 6 weeks of free groceries each year!
2. Earn cashback on your spending
There are various ways to earn cashback on spending. Using a Smart Shopper card at Pick n Pay gives you points which you can then convert to cash to deduct from your grocery shopping. Also using a Discovery card gives you cashback on healthy eating. You can use an e-bucks card which is obtainable through FNB Bank and gives you cash back on certain purchases.
3. Top up your pension pot
This will not put money in your pocket right now and it means you will have less to spend each month. However, you get a tax break if you pay money to your pension fund, as much as 40% back depending on your tax bracket. Check your employer’s contribution and try adding to make your contribution to at least 8% of your salary.
4. Sign up for online banking
Running your account online means you keep track of your spending and see exactly what is coming in and out of your account. Checking your account regularly means you will be able to get a clearer day to day picture of your finances and will enable you to see where to rein in spending.
For further advice please contact DebtBusters on 0869 99 06 06 or take a look at our website www.debtbusters.co.za.