Households will start to feel the financial impact of Covid-19 in the months to come. So it is important that to plan, prioritise spending, manage debt, and be disciplined about sticking to the plan. Here are four ways to do so:
Truth be told, many households have been feeling the financial pinch as a result of less salary increments, retrenchments, escalating unemployment and businesses closing shop because of other factors in the country. Then we have the Covid-19 that has the world at a standstill, it’s no wonder many of us wonder how we’ll get through 2020. I don’t know how much more we can tighten our belts as things are not getting easier. But with this said, we have financial tips from experts to help us get thorough the year. Here are four ways to do that:
- Children will be at home for an extended period – readjust your budget to cater for the additional costs that usually come with the kids being at home.
- These trying times call for cautious spending. Cut back on luxury items and unnecessary expenses. Save where ever possible. One cannot predict how long it will take for the situation to stabilise. The idea is that adopt a disciplined way to managing every cent and make sure we are keeping some money aside to help us weather this.
- Look for specials, buy only what you need and use your loyalty reward programmes for relief.
- Take advantage of the reduced repo rate by the South African Reserve Bank which is now at 5.25% and prime lending rate at 8.75%. This is a much needed financial relief for consumers, it means consumers will be paying less for debts such as car, home loan and personal loans. The extra available funds can now go towards your saving or paying off debt quicker.
Dhashni Naidoo, Programme Manager at FNB