The huge surge in the oil price has sent the price of fuel into the stratosphere with petrol reaching a record high of over R21 per litre. During my last drive to Natal I noticed hundreds of trucks transporting goods up and down from the Highveld. Each one driven on diesel the cost of which is included in the price of the goods being transported.
Add to this the new hike in electricity tariffs and we can only expect inflation to get ugly.
Expect interest rates to rise quickly The Reserve Bank will struggle to keep inflation under 6%. So expect interest rates to rise sharply in an attempt to curb the rapid price increases.
So what should you do?
Tighten up your budget quickly and drastically. Sift through your bank statements and find ways to cut back on your expenses. Every rand will count…..
Get creative with ways to save more . Perhaps bulk buying essentials with family and friends. Lift clubs to work and school. Shopping on line.
Get creative with a side hustle. Using your spare time on income generating projects will certainly soften the blow. There are many opportunities but you have to search and find them.
What you shouldn’t do
The last thing you should think about is borrowing more to keep up with the rising cost of living. This puts you in a space of living above your means which in turn will dig a deeper hole for you as the cost of interest rises into the future. Your debt needs to decrease if you are to have any hope of getting through.
Don’t bury your head in the sand. The impact of inflation will not go away on its own. It will have a very harsh affect on your cost of living. Taking action now will prepare you for what is to come.