We are in a crisis. We simply can’t afford the basic necessities.
I don’t know anyone who hasn’t been affected by the rising cost of living lately.
Sadly, it looks set to only get worse, as analysts are predicting that fuel prices may hit R27/litre in July 2022.
This article is written in two sections: One section is for people living on grants and earning minimum wage, and the other is for working/middle class mense who are struggling to make ends meet.
GRANTS
The latest Household Affordability Index by the Pietermaritzburg Economic Justice & Dignity group (PMBEJD) for May showed the following:
Month-on-month: The average household food basket increased by R66.96 (1.5%) in April to R4609 in May 2022.
Year-on-year: The average household food basket increased by R472.78 (11.4%) from R4137 in May to R4609 in May 2022.
Since the income of most South Africans (especially those relying on grants) is way lower than what this basket of food costs per month (R4609), I would say that we have a definite problem!
The only thing that is going to help the really poor people (the ones who have cut down on meals to survive) is an increase in the grant amounts.
For this to happen, government would have to find the money somewhere.
Forgive me for being more than just a little gatvol and suggesting that perhaps they should stop all the thieving and corruption and make the lives of their citizens better.
WORKING, BUT STRUGGLING
It truly angers and frustrates me when those who don’t live in our communities and don’t experience our struggles, give us advice which doesn’t apply to us at all.
So here are a few of my personal tips on how to survive the financial struggle:
1. Hou op die blink kant bo hou! There is no shame in being financially distressed. Discuss the financial struggles with your household and get them involved in reducing costs.
2. Compare prices in your area. If a shop close to you has a 6-pack long life milk for R75.99, and the shop in a different area has it on special for R69.99 – with the cost of petrol, it makes no sense to go driving around for savings’ which will end up costing more.
3. Don’t assume that bigger retail stores have better prices, especially with groceries. I have found that the community cash and carries and smaller retailers often have better prices than the bigger, brand name stores. Check it out.
4. Track your expenses – don’t guess. For just one week, write down every single thing you spend money on in one day.
From the tin of cooldrink at work, to the bread and the toilet roll at the spaza shop and the change you give to your children. You will be surprised at how much you really spend.
5. Draw up a budget on paper. I know there are many good apps and budget trackers available, but I really prefer to write my monthly budget down on paper. It makes it more real.
You don’t have to physically write it down every month, and when you do, you can transfer it to an excel spreadsheet later.
But do yourself a favour and write down what your monthly income and expenses are. Put everything down.
Not taking into account bank charges and admin fees is often the reason that we run short on transport money on the last two days of the month.
6. Be honest on your budget. Lying about things (especially your expenses) is not going to do you any good. Put down what you actually spend and then rather try to cut down on that amount.
7. Make the effort to get out the paperwork and list your debt.
Again, write it down on paper. Put down the outstanding balance, the term, the interest rate and the monthly payment.
If you have any extra money, put it into the debt with the highest interest rate.
8. Compare insurance prices. Just make sure that your cover remains the same
9. Use the “envelope method” when using cash. Put a certain amount of money into an envelope for a particular time frame (e.g. 1 week).
Seeing the money leave the envelopes makes the process of spending seem more “real” and you will think twice before spending.
10. Save on electricity. Switching off the lights when you are not in the room and only switching on the geyser to be used at night can save you money. Saving R5 electricity a day equates to R150 for the month, that can be used to buy food.
I have left my most important tips for last:
Don’t be in denial about your situation.
Most people who contact me do so when it is already too late and legal processes and repossession action are already in place.
The moment you make a short payment or skip even one payment (especially on a home loan or vehicle finance), speak to your creditors.
Move past your fear and embarrassment and just do it!
Become proactive about dealing with your financial distress. Speak to a registered debt counsellor and check out your options.
Let go of the guilt and shame of a bad financial situation.
Go and apply for that exemption from school fees, ask for help from mosques, churches and organisations.
Take on that extra job. Start that side hustle. Dala what you must for your family.
And please don’t judge. Everyone is fighting their own battle.