With our country in lockdown many South Africans are facing financial difficulties and uncertainty during this time. But, the good news is, there’s no better time to take control of your finances. Crises are difficult to handle because they’re unpredictable, but having some form of control over your finances will put you in a better position to deal with uncertainty.
If you’re stuck at home with only re-runs of 1990s sitcoms for company, there’s no better time to get started and take control of your finances to the best of your ability. Not sure where to start? Here are 5 ways you can constructively use the spare time whilst in lockdown to better manage your money.
1. Improve your financial literacy:
If you’re struggling financially right now due to loss of income or increased expenditure then you can also use this time to improve your financial literacy. The better informed you are the more likely it is that you’ll make good financial decisions going forward. Although the world is facing an unprecedented crisis, the fundamentals of sound money management haven’t changed.
You’ll find plenty of valuable money management resources online through financial services providers and credible and reputable financial news websites.
2. Review your budget:
This is also the perfect time to review your monthly budget and your budget for the year. With the coronavirus breakout, some of the assumptions you made at the beginning of the year may no longer be true. Your expected income and expenditure may have changed and could result in a change in your savings and investment plans or your monthly expenses.
For example, you might not be able to count on the salary increase you were expecting but working from home may mean you’re saving on transport costs for a few months. Getting a clear picture of what you’re earning and how you’re spending money puts you in control and also allows you to determine where you might be able to save and perhaps put some money aside in an emergency fund.
3. Spend smart:
If you need to cut back on spending now is as good a time as any to start shopping around. Do your research on the best prices on the goods you buy. Whether it’s your weekly groceries or health essentials, you can save big by searching online for the best deals on the products you need. Using an online price comparison tool like PriceCheck can help you save big in the long run. Featuring a wide range of products from some of South Africa’s top online retailers, it’s the best place to start no matter how small your purchase.
From healthcare aids and toiletries to groceries and cleaning products, find the best prices on all your lockdown essentials online with PriceCheck now:
4. Improve your credit score:
For those with the means to do so, the national lockdown offers a great opportunity to improve your credit score. Your credit score is the way the financial world sees you. Having a healthy credit score is less about how much money you have in the bank or how much you earn, but more about how financially responsible you are.
Very few South Africans have perfect credit scores, which means nearly all of us have room for improvement, with a twenty-point improvement achievable for most people. Start by using an online tool like FinCheck to find out your credit score. Once you know your credit score you can use online resources like this one from financial services provider, DirectAxis to find out how your credit rating is calculated and what you can do to improve it. Once you’ve signed up you will also able to check your progress over time.
Improving your credit score can help to save you money in the long run and help you get credit when you need it. People with higher credit scores are regarded as less of a risk and can be considered for better rates on loans and insurance premiums.
5. Pay your debts on time:
As tempting as it may be to skip a payment during this lockdown period if you’re financially able to pay your bills make sure you stick to your payment dates and pay all instalments in full.
Most South African banks have been working with the South African Banking Association to find ways of helping customers meet their obligations during this difficult time, so make sure you check your financial services provider’s website and social media pages for updates. Before you skip any monthly payments ensure you speak to your financial service provider first as even if a payment holiday is introduced, it is likely consumers will have to apply to be considered. Missing payments before the concession is implemented could make you ineligible and will negatively affect your credit score and will put you in breach of your contract with the lender.
But remember, only take the help if you really need it as missing payments now may mean you still have to cover the interest for this period and the payment holiday will only extend your loan period and increase your total debt in the long run.
Make a start:
At the moment a lot of people are feeling vulnerable and one way of countering that is by taking some positive action. That first positive step to taking control of your finances is the most empowering. Whether it’s taking steps to improve your credit score, becoming more financially literate, or reducing your monthly expenditure; no matter how small your action, just get started and your bank balance will thank you in the long run.
From healthcare aids and toiletries to groceries and cleaning products, find the best prices on all your lockdown essentials online with PriceCheck now:
