Review your budget to beat the April price hikes
The price of electricity, a few taxes and petrol, as well as some services increase from this month, putting more strain on consumers' pockets. Here are a few things to consider to help keep you out of debt.
MALALANE – While April 1 marked the start of the new financial year for many businesses, it also marked the start of several price increases. This means that consumers need to revise their budget to ensure their debt does not increase as well.
The petrol price increases today with around R1,31 for petrol (95 octane) and 83 cents for diesel. This is reportedly due to the rising global oil prices, weaker rand and rise in government levies.
Nersa, the national energy regulator, granted Eskom a price hike of 25 per cent over the next three years, at the start of March. From this month, the price of electricity increased with just under 14 per cent.
Dhashni Naidoo, the Programme Manager of FNB Consumer Education, explains that the increase in fuel and electricity will likely have an impact on other expenses such as food and goods prices.
Naidoo urged consumers to change their habits to help contain the extent to which they are impacted. She recommends the following:
• Draw up a budget and keep to it
Whether you earn R3 000 or R30 000, it is important to have a budget. It helps you track how you spend your money and areas where you can cut down on expenses.
Put necessities such as money for food, rent and transport on the list first. Next review how much you are spending on luxury items like entertainment, sweets and liquor and see whether you money would not be better spent for necessities or put away in a savings account.
READ: Teach your kids and teens how to be money-savvy
• Share rides with friends
Start a lift club with friends, colleagues or other parents to decrease your transport costs. Take turns to take the kids to school, sports or other extra-curricular activities or driving to work or to town for shopping.
READ: What does the fuel levy increase mean for South Africans?
• Cut down on the electricity bill
Make a habit of switching off lights and unplugging appliances you are not using. If you know an appliance, like an air conditioner, uses as lot of electricity, use it sparingly. Find out how you can limit your geyser’s power consumption.
READ: Electricity and water saving tips in a home
• Pay off your debt
The less you owe the bank or stores, the more you have to spend at the end of the month. It is better to pay off your loan or store account as soon as possible to limit the interest you have to pay.
• Start saving
You should set money aside each month for emergencies and try to make saving a habit. If you are eyeing a luxury item, try to save up to buy it in cash to avoid a price inflated with interest.Shopping more economically or in bulk can also help cut down on your bills, so regularly check store specials.
Share your best money-saving or budgeting tips with us on the Corridor Gazette Facebook page, Facebook Messenger or via editor@corridorgazette.co.za.
