Tips to help you manage cost of living

Rob Gwerengwe from FNB middle markets said the cost of living in 2022 could rise, especially rates, food and electricity.

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He offered the following tips to help you start the year on a good financial footing:

• Living within your means:
One of the golden rules for money management is to spend less than you earn.

This will help you ensure that you’re not unnecessarily relying on debt to accommodate your lifestyle.

The best way to achieve this is to budget properly to account for all your monthly expenses.

• Manage your credit exposure:
Being smart about how you use and manage credit can help you get more value out of it.

This starts with understanding why you need credit and what kind of credit is suitable for your needs.

Whether it’s a credit card, overdraft, fusion or personal loan, each of the solutions offer different benefits and pricing considerations.

• Use loyalty rewards:
Meaningful rewards or loyalty incentives can help you save money, provided that you’re disciplined about your banking behaviour and the way you manage your money.

• Plan for upcoming expenses:
While it is impossible to predict changes in interest rates and fuel prices, changes in the cost of insurance premiums and school fees are typically communicated well in advance.
As a result, it is necessary to factor in these changes when planning your finances for the year ahead.