Key tips to manage your budget during the lockdown
Living under lockdown is a new experience for South Africans and as we adapt to this new reality, many people find themselves under the pressure to calculate the financial implications of staying at home.
While some people are able to work from home and still earn an income, many are left stranded without money coming into their account.
Finance education economist, John Manyike says it is important to actively manage some of the financial stresses that comes with the lockdown.
“Minimising the long-term impact of Covid-19 on our household finances is critical at this time,” Manyike said.
“Taking safety measures to protect your financial health and being as strict about this as you are with your physical health, can help you get through this challenging time with your finances reasonably intact.”
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He says South Africans should consider approaching their banks and other institutions in the regulated financial services sector to help support them through this crisis.
With the country already battling an economic recession, he says, the unknown that the lockdown presents has added unprecedented stress.
Sharing some key basic tips, Manyike says budgeting is key, “If your budgeting shows that you are going to be short of money, be prepared to cut costs. Live on more affordable food. Eliminate big-ticket purchases that you don’t really need.”
He says monitoring of data usage and electricity is also a crucial with the entire family at home consuming resources.
He also cautioned those who plan to dip into their credit card facility.
“While it is never advisable to buy food on credit, it may be unavoidable over the lockdown period. People should use their credit with the utmost caution and only what they will be able to afford later as we are unable to predict how long the lockdown will be,” he added.
