South Africans are really feeling the heat of the ailing economy. Rising fuel, electricity, rates, taxes, and water….all impact the cost of living. It is easy to sit back and blame the economy, bury your head in the sand hoping that things will sort themselves out.
Time to take charge!
Prevention is always easier than cure. If you are not coping, then drastic and hard measures need to be applied. The sooner you re-act the softer landing will be. Let’s use an analogy of trying to fill a bath – Your income comes from the tap and your costly, excessive expenses leave through the plug.
Put in the plug
This is where the water that you have or want to keep will pass through. The old adage ‘If you find yourself in a pit – stop digging. definitely applies!
Get into survival mode and shut down your spending in every conceivable way. It is much easier to change your sails before a storm than when you are in one. Target your debt, aiming to pay off the more expensive interest first and then work off the next highest with the savings. Think of ways to save…….
Lift clubs, cell phone usage – SMS is cheaper than WhatsApp. Pay-as-you-go electricity so you can manage actual spending and not react to it. Micromanage expenses by becoming penny-wise. If you can measure it you can manage it so change the things you can….Whatever you do, borrowing more is not an option.
Open up the current tap
Dependent on the way you bring income into the household look at ways to do more. Over time, working at what you do for longer hours.
Open up another tap
Get creative on how to find other forms of income. Buying and selling goods and services are generally more manageable. Think about what people need. You don’t need to find a brand-new idea. Instead, see what is being done and just do it better. Food station, car wash services, childminding, pet services, rent out a room, house sitting……explore what you can.
Be very aware of the causes that lead to debt and prevent them rather than cure them.