Despite rising costs, it is important to save money – but you must know how.
South Africans have a reputation as bad savers, but it is not all their fault. How can you save when the prices of everything keep rising while your salary doesn’t keep up?
Consumers have already been warned that they should anticipate more increases in the cost of living this year, with Eskom applying for a 36.15% increase in 2025, while medical aid costs increased by between 9.30% and 12.75%.
To manage these increases most of us will have to find a way to make our money stretch as far as possible, Cheslyn Jacobs, chief commercial officer of TymeBank says.
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Use these hacks to help you save
He shares these saving hacks that can put money back into your pocket:
- Track your money: While this is not an ‘aha’ moment, it is grounding as it shows you clearly where you are losing money and why. Yes, it may be tedious but printing out your bank statements and reviewing them will show you where your cash is going. Once grouped into categories such as entertainment and food, you will be amazed by how much each category adds up to. Once you see it, you cannot unsee it and begin to make changes to what you spend your money on. (Tip: by using your card instead of cash, your bank statement becomes a much better tool to track your spending.)
- Review your subscriptions: It is easy to get caught up in special offers from different types of businesses. What often happens is that you provide your card details to the service provider to benefit from the ‘free trial’ and then forget to cancel the subscription. If this happened to you, you will know how difficult it can be to cancel if you try a service. Rather put a reminder in place to cancel your subscription by a certain date.
- Pre-loved is proving itself: Fast fashion has put a lot of people under pressure to buy, buy, buy. This is a huge cost to your wallet and the environment. Luckily, a rising trend to mitigate this is to try thrifting or selling pre-loved clothing to others directly using digital technology. Using Facebook Marketplace, yaga.com or social sales through Instagram for instance, you can buy clothing and other second-hand goods for a fraction of what you would pay for new items. Take advantage of this growing trend of upcycling or reusing an item, giving it a new life while doing your bit for the environment too.
- Wait for 24 hours before buying: If you see something in a store and really want it, take the 24-hour test. If you still want it after 24 hours and can afford it, buy it. Avoid impulse buying or items that are above your budget.
- Manage food costs: This one is tricky as the average cost of a household food basket in South Africa has continued to increase despite the drop in fuel and other input costs. This is noted by the November 2024 Pietermaritzburg Economic Justice and Dignity Household Affordability Index which revealed that the latest cost for an average basket of food was R5 383.38 in December. Consider joining forces with friends and family and buy in bulk. You can also shop around for the best prices and promotions online, even if you decide to do in-store shopping.
- Move house: Expensive homes and cars can drain your resources, especially as costs continue to climb. Choose a home you can afford. Avoid moving house if your motive is to keep up with the Joneses. Instead, keep up with your income.
- Compare grudge purchases: Insurance may seem like something you could do without, particularly if you seldom claim. But if that day comes when you have a car accident or a health issue, you will be thankful for the financial cover. It is important to shop around. Do your homework and find an option that suits your needs and your pocket.
- New or used cars: Of course, everyone loves that brand-new car smell but buying new is a poor investment decision as your vehicle loses value as soon as it leaves the showroom. However, if you decide to buy a second-hand car, make sure the car is in good order, even if it means paying for a third party to check everything. Also get a warranty – it will pay off in the end.
Thrifty is the new black
“These handy saving hacks can go a long way in helping you take control of your finances without making an obvious difference to your lifestyle. Thrifty is the new black – embrace this mindset to live well in 2025,” Jacobs says.
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