According to a Budget Insurance survey of over 2,000 South Africans, while the amount of money saved is not substantial due to the cost of living crisis, 47% of those who can save do so. for “rainy days”.

The pandemic has taught us that rainy days are possible, and they are tough and taxing on our monthly budgets. South Africans know this and are setting aside whatever funds they can to cushion unexpected blows.

Those unable to save money blame the rapidly rising cost of basic necessities (40%), unplanned emergencies (13%) and family obligations (12%).

What is clear is that saving does not necessarily depend on income, but rather on determination and discipline.

Respondents shared some tips to help other South Africans save money:

1. Carpooling : 36% of respondents currently carpool to and from work to reduce gas prices. Fuel costs aside, keep in mind that there are insurance implications if you choose to use your own car to transport fare-paying passengers. The insurance will cover ski lift cars as long as the passenger transport activity is not a source of income for the insured, for example an airport shuttle service. Be sure to contact your short-term insurer to check the terms and conditions of your contract.
2. Store: You can save thousands of dollars every month by researching and taking advantage of discounts and promotions. By buying more, at a lower price, you will be able to stretch your rand and lower your monthly shopping bill. Another tip offered was to buy fresh produce in the late afternoon just before closing time as they are cheaper.
3. Budget and stick to it: List your fixed expenses and other monthly deductions, then compare them to your income. If your expenses are more than your income, you need to start planning how you will reduce them. If you have money left over each month but think you should save more, set a budget to stick to. One survey respondent suggested the 50-30-20 principle whereby she divides her income into three categories: needs, wants and savings. “That way I can prioritize the most important things, enjoy a few of what I consider ‘luxuries’ and still save 20% of my income.”
4. Piggy bank: Many survey respondents indicated that they collect any small change in bulk and often bank it to avoid spending it. Everything adds up.
5. Cook instead of buy: Another money-saving tip was to cook at home instead of buying takeout. One respondent said, “I always bring a home-cooked lunch to work instead of buying takeaway. My weekly meal plans cost less than R300.
6. Prepare in advance: “I use a gas stove and an open fire to cook and also pre-cook meals and then freeze them in batches. It saves me a lot of electricity. Another respondent said: “For my vegetables, I have a vegetable garden. For clothes, I buy winter clothes in the spring and summer clothes in the winter when they are on sale.
7. Focus on your needs, adapt to your desires. Good advice repeated over and over. Be honest about your debts and expenses so you have a clear and realistic picture of your financial situation.
8. If you can’t buy it cash, you can’t afford it. This rings true for many respondents who said their needs are more important than their wants. One suggested keeping your credit card on hand only for emergencies and making the decision to pay for goods and services only in cash or by debit card.
9. Debt: Pay off your debts starting with those with the highest interest rates.
10. Bank wisely – check your bank charges carefully and watch the interest you earn on your savings. Could you spend less or earn more? Research what other banks are offering and consider other ways to invest your money.

Remember that even the smallest adjustments in a number of areas of your budget can add up to significant savings. The small changes and sacrifices you make now are worth it in the long run.

Susan Steward is with Budget Insurance.