Consumers that have borrowed money will be hit hard by the latest announcement from the South African Reserve Bank (Sarb) that it will hike rates by 25 basis points believes Ian Wason CEO of DebtBusters, South Africa’s largest debt counsellor. This is the first time that the SARB has increased the repo rate since hiking it by 25 basis points in July 2014.
23 January 2017
Going into the New Year we are naturally more optimistic about our future and the prospects it holds. This new found optimism usually fades away as the year goes on and we realise that we find ourselves in the same financial position that we were in at the end of last year. And we remember that back then, we were not so optimistic.
So we want to start this year on a different note: rather than cutting our budget to pieces to be able to make ends meet, we will look at ways to supplement your income. We know that the best way to take control of your finances is to make more money, and we have looked at innovative ways to do so. Below are a few short pointers on how to do this:
Look at effective loyalty programmes
Loyalty programmes in South Africa have seen immense growth over the past few years, with over 70 loyalty and rewards programmes available to consumers. These programmes can earn you money while you do your everyday shopping. The way to go about this is to figure out what you are spending money on at the moment, then finding the best loyalty programme to reward you for spending that money. Be careful not to fall into the trap of signing up for reward programmes that will entice you to actually spend money on something that you don’t need. The link below provides some more information on the most popular programmes available at the moment. https://businesstech.co.za/news/business/141099/these-are-the-most-and-least-popular-loyalty-reward-programmes-in-south-africa/
Use you hidden talents
We all have hobbies and passions that we’d like to practice more. Think of ways you can use these skills to make money. For example, look for fixer-uppers: buying second hand furniture or appliances and fixing them.
Sell your unwanted goods
Walk through your house and look for things that you have not used recently, and ask yourself if you would use them in the near future. If not, why keep them when you can have cash in your pocket?
Rent out a room in your house
This may sound risky but this is fast becoming preferable for new renters. There are a few platforms out there that make this process very easy and lets you choose renters that you are comfortable with. Using this option can be a great way to stay on top of bond payments.
Investigate personal income tax returns
Surprisingly, there are not a lot of people who are aware that you can actually get some money back from the tax man. Things like medical aids, retirement annuities and donations may all work in your favour. The following link might be useful to look at: https://www.taxtim.com/za/calculators/tax-refund
There are lots of other ways to supplement your income. We all have some sort of skill or asset that other people would pay to use. So taking on the New Year, let’s be creative and stay optimistic about our finances!