PRACTICAL TIPS TO HELP YOU MAKE YOUR SALARY LAST LONGER

If you’re one of the many South Africans that live month to month, you may be interested in these money tips that will help you make your salary last a bit longer.

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Gerald Mwandiambira, author and acting CEO of the SA Savings Institute (SASI), says living from pay check to pay check often has to do with how we handle earned money, and not how much we earn. Ester Ochse, channel head for FNB Advisory, says changing spending habits is a long- term solution for many South Africans. The experts offer solutions to avoid surviving on an overdraft, personal loans or visiting the dreaded umashonisa (illegal money lenders).

Related article: Where is my money going?

CREATE A BUDGET
Use a bank statement and accounts to make a list of all necessary expenses and put it somewhere visible, such as on the fridge. Follow it as closely as you can.

CUT UNNECESSARY SPENDING
Especially on items such as sweets, crisps, coffee or anything else non-essential.

PAY ON TIME
This is particularly important for your interest-bearing accounts. Pay these on time to avoid late payment fees.



USE CASH FOR PURCHASES
Use cash wherever possible to avoid credit or debit card charges and to keep track of your actual spending.

Related article: 5 things you need to know about your credit card

SAVE ON UTILITY BILLS
Turn off the lights in rooms you are not using, switch off the geyser during the day, use energy-saving light bulbs and if possible put in a water-saving shower head. Always boil just as much water you need – if you’re making one cup of tea, don’t fill the kettle. Also make sure that taps are properly closed and ensure that there are no leaks. Putting a brick in your toilet cistern also saves water.

LOW-BUDGET MEALS
Planning inexpensive meals in advance, using staples – rice, beans, lentils etc – as well as seasonal fruit and vegetables can help you cut costs. You can also buy non-perishables in bulk and perishables in smaller quantities, or freeze them.

BUY STORE BRANDS
As these are less expensive than mainstream brands. Also try unsliced breads.



CAR POOL
Get together with colleagues or friends and/or neighbours to form a car pool and save on transport costs. With the recent fuel hike taking the cost per litre to new heights, this shouldn’t be a hassle to organise.

SAVE ON CELLPHONE COSTS
Opt for per-second billing or a using a network that offers free airtime.

Related article: 8 incredibly easy tips to save money

REVIEW YOUR INSURANCE
This should be done on a regular basis such as every six months. Adjust your premiums if you stopped smoking after taking out a policy, and have your car insurance reassessed regularly, as the car’s value goes down each year.

PROTECT YOUR CREDIT SCORE
Your credit score is a highly accurate prediction of how likely you are to pay your accounts. Failing to manage your expenses might affect your credit score, which would make it difficult to get credit for purchases like a house, car or furniture. Your credit-score number is based on the statistical analysis of information in your credit report.

To improve your credit score,

• Pay your accounts on time – the more often you do, the better your credit score will be.
• Don’t use your credit card to the maximum – this will suggest that you are over-extended
• Contact your creditors if you are in difficulty. The worst thing you can do is ignore debt and try to avoid your creditors. As long as you engage with them and make arrangements to pay what you can afford, most creditors will be reasonable.

START EMERGENCY SAVINGS
Deposit a small sum (but as much as you can) each month into an emergency account to help you in times of, well, emergencies.

Related article: Cash-savvy kids