Food prices are expected to rise by double figures in these tough economic times. According to experts in the fields of money, predictions are that the weak Rand will further push the price of imported goods by significant margins.
The struggling manufacturing sector means that more money will be leaving South African shores in the wake of a weakening Rand; economist have also warned of fear of a recession.
Consumers will further feel the pinch as forecasts also include an increase in the price of essential resources, water and electricity tariffs.
The consumer price index (CPI) is also expected to rise by the double and some suggestions have been that medical aid schemes are likely to increase their contribution fee by the double digits.
Consumers have been urged to be conscious of their spending habits during these trying times.
Some money wise tips have been shared by economists to help ordinary South Africans survive the steep hill that awaits them.
- Make a budget
This is the most important step to keep track of your finances and ensuring you don’t spend money on unnecessary things, making a list of your income and expenses will provide you with an honest picture of your financial situation so that you can begin making realistic decisions regarding the financial survival of your household.
- Prioritise paying off debts
Do this early in the year as the Reserve Bank raised the interest rate by 0.25% this means getting into debt has become more expensive overtime. Remember the goal is to remain debt free
- Look towards the future
Putting goals in place such as saving towards a child’s education, a home or retirement will also help you stay focused and prevent you from being tempted off your path by unnecessary spending