When I look back at 2022, the thing that stands out most for me are the contrasts.
These contrasts are particularly highlighted when I hear of South African children literally dying of hunger in 2022.
On the other end of the spectrum we have our president, who is so filthy rich that he doesn’t mind keeping millions of rands stuffed in a couch!
The thought that that money (and all the other ill-gotten gains) could have saved children the agony and suffering of dying from hunger - makes me extremely angry.
The contrast between the wealth of the people who ran SOEs like Eskom, into the ground, in comparison to ordinary citizens who are plagued by load shedding and scrambling for a R20 for a few units of electricity, makes me want to vomit.
The stark difference between those who have benefited from thievery and corruption, merrily buying luxury homes and vehicles for cash, while the man in the street is being broken by rising interest rates, monthly bond and debt repayments, leaves a bitter taste in my mouth.
Let’s not even start on the money being thrown around by the bougie rich crowd, while the continuous rise in fuel prices and cost of everyday necessities means that most parents have to choose which necessities they have to deprive their children from.
When I see the despair and utter weariness of the owners of businesses doing everything they can to become compliant on the databases of local, provincial and national level – only to have contracts and tenders go to cronies of those in charge – it makes me want to punch someone.
Sadly, I can go on and on. One thing is clear – when it comes to our money, we are going to have to start looking out for our own best interests, because it doesn’t seem as if many others will.
We must become as financially informed as possible and take the necessary steps to empower ourselves to not only survive, but to also thrive in these trying times.
We need to start saving money by cutting costs and changing our lifestyle.
Prioritise (wants and needs)
We need to be honest about what we want and what we need.
Daily necessities, getting rid of our debt, as well as school fees, school uniforms and stationery, should be top of mind as we head into January.
Be honest with yourself and differentiate your wants from your needs. There is no shame in not being able to afford something. Stop all and any unnecessary spending.
Some people get into the mindset of “things are bad, I’ll feel better if I spoil myself and my kids”.
This isn’t a good train of thought. Splurges on things that bring us momentary pleasure right now, can have disastrous consequences, as interest rates and prices are still set to rise.
Set aside the time to start digging out all your financial contracts and paperwork.
Though it’s not something we easily acknowledge, the holidays are the perfect time to go through the paperwork and make a note of who you owe what to.
Have a look at what your interest rates for every debt is. If you can afford to, then pay back the most expensive ones (the ones with the higher interest rates) first.
Examine your contracts for credit and life insurance.
Check out how long you still have to be paying on all your accounts.
Get a credit report
Every South African consumer is entitled to one free credit report from every credit bureau, once a year. Make the effort to get yours.
Draw up a budget
Drawing up a budget may seem boring but it is a valuable tool in helping you manage your finances.
Don’t keep your budget in your head. It doesn’t work.
Rather write it down on paper, do it on your PC or use one of the many free budgeting apps available.
Sometimes you need your financial situation to stare you in the face so that you can see exactly how much you are spending, and possibly cut down if needed.
Scale down
Cancel subscriptions to apps you don’t need.
Cancel any and all duplicate insurances, especially those offered as a side product.
Check out the terms and conditions and cancellation clauses and penalties applicable.
Get comparative quotes on medical aids, insurance, etc
A roof over your head is a necessity. Paying rent in an area you can’t afford isn’t. Considering relocating to a cheaper location.
You need transport to get around, but you don’t need a big fuel-guzzling car, especially with the rising costs of fuel.
Save money on the way you do things
Switch off your geyser during the day. If you save R10 a day on electricity this way – that’s R300 a month that can go towards something else.
Check how many times you are getting takeaways. Make food that feeds more people, and where leftovers can be frozen.
Check for specials on cellphone data and airtime deals.
Do your homework and find cheaper food prices. By keeping track of “specials” on various grocery stores, you can save quite a bit of money on your weekly or monthly grocery purchases.
We need to stop living beyond our means. If that means acknowledging to ourselves (and others) that we can no longer afford what we previously could, then so be it.
There is no shame in acknowledging that things are tough right now. The decent citizens of South Africa are in this together.
dailyvoice@inl.co.za