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Mastering Your Money in Tough Times
Let’s be honest: living in South Africa is expensive. Between Eskom tariffs increasing, the petrol price roller-coaster, and the rising cost of a basic food basket, the average household budget is under siege. Budgeting is no longer just a “nice to have” administrative task; it is a survival skill. If you don’t tell your money where to go, you will wonder where it went.
The 50/30/20 Rule (Adapted for SA)
A popular budgeting method is the 50/30/20 rule, but in the South African context, we often need to tweak it.
- 50% Needs: Rent/Bond, groceries, transport, school fees, electricity, and insurance. These are non-negotiables.
- 30% Wants: Entertainment, takeaways, data/airtime (beyond work needs), clothing.
- 20% Savings/Debt: paying off debt and saving for emergencies.
Reality Check: For many families, “Needs” might take up 70% of income. That’s okay. The goal is to track it and try to squeeze the “Wants” category to free up cash for debt repayment.
Track Every Cent
You cannot budget in your head. You need data. For one month, track every single Rand you spend. Use a free app like 22seven (backed by Old Mutual) or simply keep receipts and use an Excel spreadsheet. You will be shocked at how much “leakage” there is—R30 here for a cooldrink, R50 there for parking. These small amounts add up to thousands over a year.
Grocery Hacking
Food inflation is a major budget killer.
- Shop the Specials: Plan your meals around what is on promotion at Checkers, Pick n Pay, or Woolies. Use the loyalty cards (Xtra Savings, Smart Shopper) religiously.
- Buy in Bulk: If you have the cash flow, buying non-perishables (rice, maize, washing powder) in bulk at Makro or a local wholesaler is significantly cheaper per unit.
- Meat Alternatives: Meat is expensive. Introduce “Meat-free Mondays” or use lentils and beans to bulk up mince dishes. It’s healthier and cheaper.
The Energy Audit
With electricity costs soaring, energy efficiency is a financial imperative.
- Geysers: Your geyser accounts for up to 40% of your bill. Turn the thermostat down to 60°C. Consider a geyser timer or a solar retrofit if you own the property.
- Cooking: Gas is often cheaper and more efficient than electric stoves, plus it helps during load shedding. A Wonderbag (insulation cooker) can save huge amounts of electricity for slow-cooked meals.
Review Your Subscriptions and Contracts
We often sign contracts and forget them.
- Insurance: Call your insurer annually. Ask them to re-evaluate your premium based on the depreciated value of your car. If they won’t drop it, get quotes elsewhere. Loyalty rarely pays in insurance.
- Bank Fees: Are you on the right account? If you are paying R200 a month in bundle fees but only do five transactions, downgrade to a pay-as-you-transact account. Or switch to a low-cost digital bank like TymeBank or Bank Zero.
Conclusion
Budgeting isn’t about depriving yourself; it’s about prioritizing what matters. It’s about sleeping soundly at night knowing the rent is paid and there is food in the fridge. Start today with a simple spreadsheet, be honest about your spending, and take back control of your household finances.
