Budgeting around the fuel hike: How you can save

With the fuel price hitting an all-time high tomorrow (July 4), many South Africans are worried that this will burn a hole through their pocket.

The Automobile Association (AA) expects that the price of fuel will increase by around 30 cents a litre, which will take the petrol price over R16 in July.

“The current data forecasts a rise of around 32 cents a litre for petrol, 30 cents for diesel and 22 cents for illuminating paraffin,” said the AA.

The association said the increase comes against the background of a weakening rand against the US dollar and the price of oil.

There are, however, ways to save and help you ride out this increase:

1. Compromise: All of us are guilty of buying luxury items such as expensive perfume or designer threads. The last thing you want is to be in a position where you have to compromise on the important things.

So instead, compromise and list the priorities in your life that come first and need to be paid.

2. Saving goals: There are many ways to help break the bad habit of not saving that will force you to save every month. This can include setting up a monthly debit order to an investment account, opening a tax-free savings account and increasing your pension fund contribution.

Make a goal of how much you want to save in a certain time period and stick to it.

3. Keep track of spending: This does not mean scrutinizing every cent, but rather knowing your spending patterns to identify possible areas for saving. A good way to do this is to look at your monthly bank statement and see where most of your money is going.

This gives you the tools and understanding to make the changes in your life that will help you keep up with this latest fuel hike.

4. Create a budget: After recording expenses monthly, you can begin to organise your recorded expenses into a workable budget.

Your budget should outline how your expenses measure up to your income and set a certain amount for the various expenses such as fuel, clothing and entertainment.

Also read: Petrol Hike: Motorists are reminded of the petrol price increase at the end of this month

Read Also: Fuel Hike: Petrol price to increase tomorrow

5. Track your progress: Check your budget every month. If things aren’t going to plan, don’t give up.

You can make changes as much as you want until you find a budget that works with you, instead of against you.

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