financial lessons, money matters
In a recent Financial Wellness survey, short-term lender Wonga found that 50% of South Africans earn less than R10,000 per month, and 16% of people are unable to purchase basic necessities such as food or clothing due to lack of finances.
Many South Africans are finding it difficult to make ends meet as a result of the unstable economy.
Others are experimenting with creative ways to lower the cost of their daily necessities, while some are turning to side businesses to earn extra money.
Basic financial literacy is essential to maintaining a limited budget, especially given the financial strain that the majority of families and individuals are experiencing.
“Understanding how to manage finances is important to ensure that you are budgeting correctly and staying on top of your monthly expenses,” says James Williams, head of marketing at Wonga.
“There are simple things you can do to spend less and save more for the things that you want.”
Williams shares five ideas on how to spend less and stretch your money further:
Put your smartphone to work and budget with the 22 Seven App by Old Mutual.
The application is available on iOS, Android and web and gives you a complete overview of your finances as well as a personalised budget.
Discovery Health’s popular incentive programme for its members, Vitality, allows you to maximise your rewards by keeping active and making better lifestyle choices.
This includes up to 20% cash back on your healthy food items from Woolworths and Pick n Pay, as well as other perks including free weekly coffees and smoothies at Kauai.
Beat the petrol hikes with fuels rewards programmes such as the Shell V+ where you earn 15c back per litre of fuel and 0.5% off on selected products in-store.
Alternatively, you can use your Pick n Pay smart shopper points to fill up your car, with a minimum value of R20 that could be spent on your fuel bill.
Get smarter with your geyser by using a hot water control system such as Easiwise to regulate it according to your household needs.
This can save you up to 25% by giving you complete control of your geyser via an Android or iOS app and will reduce the spend on your electricity bill all year round.
Think ahead
Design an annual gifting plan to shop for gifts during sale seasons like on Black Friday.
There are also a number of free apps that you can use to check for daily and weekly store promotions, or you can simply make your own plan. Saving money can be challenging.
However, this can be achieved by adopting healthy spending habits. “Try to be creative about ways to spend less and you will reap the rewards over time,” concludes Williams.
Financial literacy can guide consumers on how to make informed important financial decisions. Online sources like the Wonga Money Academy offer basic information on financial literacy to make sure you understand how to manage your money.
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