In a challenging economy, working smarter with your money is essential. Whether you’re dealing with rising costs, stagnant wages, or just trying to stretch your rand further, here are quick personal finance tips tailored for South Africans.
1. Budget Like a Pro
Track every cent. Use free tools like 22seven or Excel to create a clear picture of your income and expenses. Categorise needs (rent, transport, food) and wants (entertainment, takeaways), and aim to cut unnecessary spending.z
2. Kill Expensive Debt
Prioritise paying off high-interest debt like credit cards, store accounts, and personal loans. Interest eats into your cash flow – pay more than the minimum and avoid taking on new debt unless it’s for an appreciating asset.
3. Save First, Spend Later
Set up a debit order to transfer money into a savings or investment account as soon as you get paid. Even R200 a month adds up. Consider tax-free savings accounts (TFSAs) for long-term growth without tax on interest.
4. Invest Wisely
Don’t let your money sit idle. Explore low-cost index funds (like Satrix), unit trusts, or ETFs. If you have some risk appetite, investing on the JSE or global markets via EasyEquities can offer better returns than a savings account.
5. Emergency Fund is Key
Aim for 3-6 months’ worth of expenses saved in an accessible account. Life happens – job loss, car trouble, medical bills – and an emergency fund keeps you from turning to debt.
6. Cut Costs, Not Quality of Life
Shop smarter – buy in bulk, use loyalty programs (e.g., Checkers Xtra Savings), and switch to generic brands. Also, review subscriptions and cancel what you don’t use.
7. Upskill for More Income
In tough times, increasing income is just as crucial as cutting costs. Consider side hustles or free/affordable online courses to boost your earning power.