Car insurance is an important expense for any car owner, but it may be tempting to forego your car insurance premiums during tough financial times, especially if you’re living on a tight budget. Driving without cover could cause financial difficulty if you are involved in an accident. Why not keep the car insurance cover and use several ways to save money in your monthly budget? Here are some tips to help you do just that. 1
Commit to savings
Consider saving 10% of your monthly salary as if you are paying a bill. This will help you build an emergency fund for unexpected expenses. Remember that saving money requires commitment, so it should be a priority in your budget. To make it easier, set up a monthly debit order to transfer money into a separate savings account. This way, you’ll be able to build up your savings gradually over time, and you’ll have a safety net to fall back on when you need it.1
Check your expenses
Monitoring daily spending is a great way to identify any unnecessary purchases. By prioritising your expenses and differentiating between wants and necessities, you can reduce costs and make your money go further. or for example, if you find yourself spending a lot on takeout coffee, you might consider investing in a coffee maker for your office or home. If you have access to a computer, you can create your own budget template using excel to track your spending and make sure you stay on track. This will allow you to see where your money is going and make adjustments as needed. 1
Are insurance, medical aid, and bank charges costing too much?
If you’re looking to save money on your monthly expenses, you may want to consider restructuring your insurance, medical aid, and bank charges. One way to do this is by shopping online for better rates or by negotiating with your insurers and bankers for improved terms or rates. By taking the time to shop around and negotiate, you may be able to save considerable funds on your monthly expenses. 1
Change your cell phone package
Take a look at your cell phone statements to see how much data you use each month. You may be surprised to find that you’re paying for more data than you actually use. If this is the case and you need much less, consider switching to a different package that better suits your needs. 1
Maintain your car
Regularly servicing your car is essential for maintaining its performance and preventing high repair costs in the future. By taking your car in for regular check-ups and tune-ups, you can catch any issues early on and address them before they become bigger problems. This can help you save money in the long run by avoiding costly repairs and prolonging the life of your vehicle. 1
Save fuel
With fuel prices being so high, it’s wise to be mindful of your fuel consumption and make an effort to drive as economically as possible. One way to do this is to regularly check your tyre pressures to avoid extra tyre friction on the road. Properly inflated tyres can help reduce friction on the road and lower your fuel consumption. Another tip is to close your windows while driving to reduce drag and use your air conditioner intermittently. Additionally, try to avoid carrying any unnecessary weight in the boot as this can also add extra strain on your engine and increase fuel consumption. 1
Reduce transport costs
If you’re looking to save money on your daily commute, consider joining a join a lift club or carpool. Not only can this help you save on gas and vehicle wear and tear, but it can also be a great way to meet new people and make your daily commute more enjoyable. Alternatively, you can also choose a calmer and shorter route going to work. This can help you avoid rush hour traffic and save you time and money on petrol. 1
Control grocery expenses
Having a budget in place for your grocery expenses is essential in order to save money. Once you’ve set realistic limits for your grocery spending, make sure to stick to them. You can do this by avoiding too many trips to the shops and so minimise any unnecessary expenditure. You can also find out online when shops have specials, such as just before closing or at different times of the month. 1
Reduce your electricity bill
Saving on energy costs is an important way to reduce your monthly expenses. You can achieve this by being mindful of the energy you use in your home. Make it a habit to switch off the TV, appliances, and energy-saving lights when not in use. Invest in energy-efficient electrical appliances when replacing them. Reduce geyser water temperature or install a time switch to have the geyser switch off for a specific time every day. You could also install effective insulation in the ceiling to minimise heat loss from the living quarters below, particularly during winter. 1
Disclaimer
The aim of this article is to show you how to save money so that you can still afford car insurance. 1
The unpredictable nature of our South African roads makes the need for good car insurance not negotiable. We at PMD can provide you with information on affordable car insurance products while you experience our world-class client service. These products have excellent benefits such as fixed premiums* and a reduce-to-zero excess*. T’s and C’s apply.
If you want to purchase a financial services product, visit a certified financial advisor for professional advice and safeguard your interests.
Source:
1https://www.lamna.co.za/blog/top-15-south-african-tips-for-saving-money/
This article was prepared by Eric Sandmann in his personal capacity. The views and opinions expressed in this article are the author’s own. The views and opinions in the article should not be attributed to anyone but the author unless expressly stated. Nothing in this article should be relied upon as advice, this publication is presented for informational purposes only. No person should act or refrain from acting in reliance on any information found in this article, without first obtaining proper financial advice from the appropriate professional. The author makes no claims, promises or guarantees about the accuracy, or completeness, of any information linked from, referred to, or contained in this article. The author reserves the right, to edit and change the content of this article.