5 WAYS TO SAVE DESPITE THE HIGH INFLATION RATE

“Everything is so expensive these days.” This phrase seems to slip into conversations far too often, and it’s true — everything is expensive thanks to South Africa’s high inflation rate.

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WHAT IS INFLATION?
According to Investopedia, inflation is an increase in prices that leads to a decline in purchasing power over time.

Is your money lasting less time than it used to? Here are five crucial ways the inflation rate is affecting your finances and tips to help you save on costs.

1. PETROL

• Drive during off-peak traffic times. Avoid sitting in traffic as much as possible as this drives up your fuel consumption.
• Drive slow and steady. According to Layton Beard of the AA, driving fast will use more fuel. Speeding may save some time, but it can cost you in the long run. Driving slower and more efficiently will add valuable kilometres to your tank each month.
• Keep your vehicle in good shape. Your car suffers from everyday wear and tear on the road. Ensure that your vehicle is serviced regularly to keep car maintenance up to date and minimise the risk of unplanned breakdowns. A faulty car can add up to even more unplanned costs.

2. FOOD

• Compare prices at different grocery stores carefully. Do some window shopping on the internet before your grocery shopping day to see where you can find items at the best price.
• Plan your meals and keep track of all your food items to keep up with bargains.
• Save money and buy less meat by cooking more vegetarian meals. They’re just as tasty!
• Jet Club members receive monthly vouchers which can be redeemed at Shoprite, Checkers, Checkers Hyper stores as well as selected fast food outlets.

3. ELECTRICITY

• Turn off all lights, plug points and appliances when not in use.
• Switch your geyser on only when necessary and for a short period. Manage the length of your hot showers.
• Cook on an induction hob rather than a stovetop.

4. RENT
With the increase in living costs, it’s getting more difficult for tenants to pay their rent on time. Make sure you cover your rent and bond payments before allocating the rest of your income to other bills. If need be, cut from your other expenses.

5. SAVING
With the higher inflation rate, everything is getting more expensive and it’s easy to dip into and deplete your savings. Make saving a priority by ‘paying’ yourself before you pay the rest of your bills. Remember that savings can provide some much-needed cushioning when you’re hit with unforeseen expenses, so every cent counts.

Click here for more financial tips.