4 practical budget cuts to help you stretch your rands

With the global cost of living always on the rise, many people struggle to keep up. We know a few ways to beat the increasing food and fuel prices and monster interest rate hikes.

According to Stats SA, the price of food and non-alcoholic beverages has increased by 14% in the space of a year, making it the largest annual increase since the 14.7% rise in March 2009. The term ‘living on the breadline’ could not ring truer. While there is very little we can do about the current cost-of-living crisis, there are a few ways you can make your money go further.

Use a budgeting app
Budgeting apps are great for tracking spending. At the top is 22Seven: a free local budgeting and investing app that houses your bank accounts, investments, loans, store cards and cryptocurrency all in one place.

The app creates a personalised budget based on your actual spending, which it gathers from analysing your bank transactions. You have the option of setting limits for each expense category, which will help you to avoid overspending. 22Seven is partnered with all major South African bank and you can rest assured your information is stored safely and securely.

Do an inventory of your memberships and subscriptions
If you tallied up how much you spend on your memberships and subscriptions, chances are there are some hefty monthly fees for services you barely use. If it’s been months since you used the product or service, cancel the subscription. You can always re-subscribe later.

If you’ve subscribed to a service to benefit from the free trial period, make a note in your calendar to cancel the subscription before the payment goes off. Some services are quite sneaky and make a point of only mentioning the trial end date in the fine print.

Prioritise paying off debt
Debt can take a huge chunk of your income every month, and it can feel overwhelming to tackle it when your priority is to put food on the table. However, it’s important that you make debt repayment a part of your monthly budget – even if what you can spare is a small amount.

Rank your debt in order of highest to lowest interest rates and pay off the debt with the highest interest first, followed by the next highest, and so on. Set target dates so you stay on track.

Lower your electricity bill
Earlier this year, the National Energy Regulator of SA (NERSA) approved a 18.65% electricity tariff hike, effective from 1 April 2023. Here are a few ways you can keep your electricity expenses down:

• Invest in a geyser blanket. Geyser blankets are relatively inexpensive and can reduce the heat loss of your geyser by half.

• Unplug devices when not in use. Many electronic devices draw a small amount of power when plugged in. With loadshedding a reality, it also makes sense to unplug devices to avoid power surges, which can increase the risk of damage to appliances and may even spark fires.

• Use LED light bulbs. While they cost more, LED bulbs use less electricity and will save you money in the long run. Better yet, install rechargeable LED bulbs. They function like normal bulbs, recharging when the light switch is on and remaining lit when power cuts out.

• Turn the lights off when leaving a room. It sounds obvious, but have you considered how often you leave lights on in the house? Remind members of your household to switch off the lights if no one is using a room for some time.