National Savings Month: 4 Ways in your Life where you can Cut Costs
In this article, we ask business leaders from a variety of industries for advice on how consumers can save money.
06/07/2023
The majority of South Africans are struggling
to make ends meet as a result of the country's
rising cost of living. The majority of citizens
have had a challenging year due to a cascade of
negative events, such as rising fuel prices and
interest rate hikes.
Inflation
necessitates that South Africans reduce costs
wherever possible. In this article, we ask
business leaders from a variety of industries
for advice on how consumers can save money.
1. Extra payments - where you can
If you have a few rands to spare for saving each month, consider making an extra payment on your bond, advises Carl Coetzee, CEO of BetterBond.
"By contributing a little bit extra every month on bond payments you will reduce the amount of interest applied to your home loan account and added to that, paying that bit extra means that you will also pay off the total debt much faster - even shaving years off the repayment period."
Remember, it does not have to be a large amount. As little as R200 extra each month (the cost of a takeaway meal) on a R2 million bond at the current prime rate of 11,75% will trim two months off the term of your home loan and save you R136,432 in interest over a 20-year loan period. "Having said that, keep in mind that this doesn't mean that you have to put any money left over as a bond payment, but more about having the discipline to pay whatever extra you can afford. This little bit extra will help reduce the balance, which in turn reduces the interest that the bank will charge," says Coetzee.
Be sure to get multiple quotes to find the best product at the best price for you,
2. Adjust your excess
Insurance, according to Mishaya Chettiar, Executive Head at Everything,Insure, is one of the first places people look for ways to save money. Although cheaper is not always better when it comes to insurance, using your excess to reduce your cost is one of the tips if you are looking to reduce the premium price.
The higher the excess the lower the premium, which is the amount of money you are willing to spend before the insurance company pays its portion of a claim. "Be sure to select an excess that you can actually afford to pay in the event of a claim," Chettiar advises. "Another piece of advice is to get multiple quotes to find the best product at the best price for you," Chettiar suggests.
3. Upcycle food
As
the cost of living rises, some of the changes
we’ll make in our kitchens will arise out of
necessity too. One change that many can make is
to upcycle food which is as simple as using the same ingredients for
multiple meals or establishing a small vegetable
patch in the garden or on a balcony. This all
leads to creating meals that are more
affordable and sustainable at the same time.
“It is not a new idea to select a single ingredient
that can be used over
several days but today,
this is commonly referred to as food upcycling.
Leftovers from Sunday lunch are upcycled into
Monday's sandwiches. A roast chicken, for
example, will have leftovers for chicken mayo
sandwiches or a chicken salad and the bones and
leftover bits can be upcycled to make gravies or
soups for another day. One great way to upcycle
leftover chicken is to make a stock that can be
frozen for adding to pie fillings, soups, stews,
and more,” says
Norman Heath, Executive Chef at Radisson Blu
Hotel Waterfront
Upcycling food saves you money because it reduces food waste and gives your food a longer life cycle. There are so many things that can be done with foods that one wouldn’t ordinarily think to use.
“Vegetables like celery, radishes, green onions, lettuce, and sprouts can all be grown on a kitchen windowsill and did you know that rather than discarding their roots and tops after use, you can place them in a glass of water and watch them grow with just a little sunshine and before you know it, you have more vegetables for use in the kitchen,” he explains.
4. Spend less on non-negotiable items
Smartphones have become essential
devices for most people. However, as things have
become so expensive lately, we’re all looking to
save where we can. One way is by spending less
on our non-negotiable devices, such as
smartphones. Before your next upgrade, consider
this, could you buy a good quality, good looking
and efficient phone with your current monthly
payment?
When shopping for a smartphone,
a great value for money option is the new Nokia
02-4G which costs as little as R1,299. This
phone is built to take on life’s little knocks.
Plus, all day battery life will keep you powered
and connected longer. Nokia smartphones come
with fewer pre-loaded apps, so you have more
space for the things you love. Michelle Wynne,
Head of Marketing, SSA.