- Don’t panic. Before cashing in any policies or benefits, get advice.
- Investigate options for financial relief and ask for calculations so that you know what the costs are in the long term.
- Food: Go shopping with a list, use the points you earn from loyalty cards and give someone in the household the job of looking out for special offers.
- Don’t be too proud to ask for help if you can’t afford to buy food – friends, family, churches, NGOs are out there helping people just like me and you. Giving brings joy to the giver.
- Medical Aid: downgrade to a lower benefit option, or if you can’t afford medical aid, use public health facilities. COVID-19 has shown us that these facilities are better than most people thought.
- Shelter: Rent out a space at home to get extra income, or move in with family temporarily.
- Security: If you have a contract with a security company, see if you can downgrade to an essential level.
- Education: Move scholars from a private school to a good Model C school, or home school (we have had a taste of that during lockdown).
- Transport: Sell a second car to reduce debt. Some people have opted for car-hail services rather than owning cars. If your car is financed, find out if there are penalties. If you still owe money on the car, and sell it for less than settlement, you still need to repay the loan.
- Quit smoking.
- Replace luxuries like alcohol, snacks and sweets with healthier, less expensive options.
- Clothing: Make do with the clothing you have, or if you have growing children, consider a pre-loved clothing exchange in your family or community. Look to shop from factory shops if necessary.
- Domestic Help: If you need child-minders or domestic help, negotiate a win-win which might mean they also have to sacrifice some income, rather than their job. If you need to retrench your domestic helpers, assist them to apply for UIF.
- Reduce children’s pocket money/discretionary spending, and encourage them to make their own budget. If you need to cut it, they are more likely to understand if they know the big picture.
- Connectivity: Review your mobile phone and data costs and reduce to the minimum.
- Avoid committing to new debt, like upgrading your mobile and locking yourself into a new contract. You can keep your phone and opt for a pre-paid package.
- Pamper at home rather than a salon.
- Gifts and giving: Volunteer your time and talents instead of financial donations or buying gifts.
- Generate income: Develop a side hustle to earn from a talent/hobby.
- Entertainment: Replace DSTV with a cheaper alternative (e.g. Netflix, SABC).
- Insurance: Review and get new competitive quotes for your insurance policies.
- Bring and share meals when entertaining (the day WILL come!).
- Bulk buy: Can you buy on bulk and share with another family? Investigate wholesale options.
Society is in this together. Share ideas. There is always a Plan.
Contact LifeAssist for counselling, financial coaching and debt management services.
Source: Inspire Wellness: 27 April 2020