Interest rates have gone up, the price of petrol has soared, and the cost of living is skyrocketing. Maybe it’s time to take a good look at your household expenses and how to keep them in check.
When it comes to cutting expenses, there are small changes you can make in your spending behaviour that can add up to big savings.
While some expenses may seem minimal, you would be surprised at how much money you could save over just a few months, by putting these frugal tips into practise.
Avoid a shocking electricity bill
Save R480 a year by installing an energy efficient shower head, which uses 40% less hot water. To test your shower head, hold a bucket under the
shower for 12 seconds. Measure the amount of water in the bucket with a measuring jug. If you have collected more than two litres of water, your showerhead is inefficient.
Cut 5% off your electricity bill by maintaining your geyser temperature at 60°C. First, switch off the electricity circuit at the mains. Then, undo the cover over the electrical element of the geyser and turn down the thermostat using a screw driver.
You can save R500 a year by insulating your geyser, as well as the water pipes from the geyser for the first three metres, with a geyser blanket.
Reduce electricity used by your appliances by 20% by turning off appliances at the plug. Appliances such as televisions and DVD players, which remain on standby when not in use, draw about 20% more electricity than if they were turned off properly.
Cut a further 10% off your total electricity bill by reducing your pool pump’s operating hours to six hours a day.
Cut your light costs by 75% through installing compact fluorescent lamps (CFLs). Lighting accounts for 17% to 20% of your electricity bill, so switch off lights in rooms that are unoccupied.
Be a cost-conscious grocery shopper
Shop smart. Check the unit prices on products instead of just looking for the lowest price. A larger pack will have a higher price, but usually works out cheaper per unit.
For example, you might find it’s cheaper to buy a 1kg tub of margarine in one shopping trip, rather than two 500kg blocks of margarine over two shopping trips. If you’re contemplating a purchase that is not an absolutely necessary item, give yourself a week to think about whether you really need it before you hand over your hard-earned money.
Watch your TV budget
Cancel or downgrade your satellite television subscription. Do you really need more than 300 TV channels? How many channels do you actually watch and how often do you watch TV? Consider spending more quality time together as a family or downgrading your satellite package to a more affordable option.
For example, if you downgrade from the DStv Premium package (R665 a month) to DStv Compact (R295 a month), you will save R370 a month or R4440 a year.
Make the right call
Save on your phone bills. With Telkom’s 19:00 to 07:00 Callmore time, Blackberry’s BBM service and Whatsapp, you have little excuses for high phone bills. Make calls only when you have to.
Drive costs down
Check your car insurance premium annually. Your insurance should be adjusted each year to account for the fact that your car depreciates in value. Not all insurers make this adjustment automatically. You snooze, you lose!
With the price of petrol at record-level highs, consider forming lift clubs for school and getting to work, but inform your insurance company first.
Save on your health
If you are on chronic medication, shop around for the best price. Although we have a single exit price for medicines in South Africa, the dispensing fee differs between pharmacies and this can add up to a hefty annual saving.
Check which pharmacies are approved by your medical aid scheme and also look out for national chain pharmacies that can offer you lower prices.
Teach your children well
Instead of shelling out for new uniforms constantly, check out the school second-hand shop. You will pick up good-quality clothing that is priced reasonably and is only likely to be used for one year or even just one or two terms, depending on your child’s growth rate.
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