For most South Africans, it has been tougher than usual, with petrol prices at record levels and the increasing cost of living turning the screws ever-tighter. To make matter worse, the Reserve Bank increased interest rates in their efforts to control inflation, meaning you and I will have even less disposable income as all debt repayment obligations tick upwards.
Unfortunately, this year, the money-saving hacks of years gone by (planting veggies in your garden, carrying a lunch box to work instead of buying food, cutting out cups of coffee) will not necessarily shift the needle in a meaningful way for most of us.
By no means am I dismissing all the little alterations we make to save money. However, I do think it is clear that we are living in very difficult economic times and, therefore, need to take somewhat more drastic measures to make a difference. This doesn’t mean that you should live like a pauper, but rather think about where you can decrease your costs in meaningful practical ways.
Here are five practical measures you could consider to significantly reduce your expenses:
1. Work from home 2-3 days a week
If there is one thing the 2019 Coronavirus pandemic proved, it was that many of us can work perfectly well from home. In fact, many of us proved that we are more productive at home since we spend less time travelling to and from work and there are fewer casual conversations with colleagues. If your job enables you to work remotely, and your manager approves, working from home a few days a week is a big time and money saver.
2. Move closer to the office
Property within and around the places we work is usually expensive, but have you considered the cost of your current rent combined with the majority of your monthly petrol and vehicle maintenance expenses. Throw in time saved and peace of mind and you may find that you would be squarely in the black if you moved closer to the office.
More than 80% of my fuel spent is spent traveling to and from the office. A sweet spot would be living closer to the office and saving money overall.
3. Sell the car
Have you ever added up all your car-related expenses, such as car loan repayments, insurance, fuel, and service plans? These expenses are usually much higher than the cost of public transport and/or e-hailing services. For those occasional long weekend drives, the lowest daily car rental rate that I have come across is R159.
4. Downgrade the car
A car is meant to get you from point A to point B but for some people they are guilty pleasure purchases. If you downgrade to a smaller, more fuel-efficient car you could be saving on repayments, insurance and fuel, not to mention parts and servicing.
5. Sacrifice your personal space
Live with family or rent a flat with a friend and share all living expenses such as rent, water, electricity, wi-fi and food. There is also the added bonus of sharing all the household chores. Alternatively, you can rent in a communal space to decrease the risk of losing a friend should one of you be unable to pay their share (or even be a total pain to live with).
These suggestions will not apply to everyone, but hopefully they initiate an internal conversation on bigger steps to lower your expenses so that you can afford to save for a better tomorrow.
The content herein is provided as general information. It is not intended as nor does it constitute financial, tax, legal, investment, or other advice. 10X Investments is an authorised FSP (number 28250).
