In our previous blog, we highlighted the implications of being under debt review and how many South African consumers did not have enough cash left at the end of the month. In this article, we will share some steps to help you manage your money more efficiently, in order to reduce that economic pinch.

Understand where your money is going

One of the first steps is to establish where your money is going. This is an effective way to see how much you spend on your essential expenses (rent, electricity, medical aid, and groceries) and luxury expenses (such as going out for dinner, movies, and clothes). After doing this exercise you will see where you can look to shave some costs. The goal is to be in a position where you spend less than you earn.

Change the way you shop

In an article titled Debt keeping you awake at night? 4 ways you can save more money, Dhivana Rajgopaul shares how changing some shopping habits is another way to save money. She explains that you can find specials in newspapers, buy at stores that are nearby each other (reducing travel costs), draw up a budget before you do your shopping and opt for online shopping to curb impulsive buying.

Be an initiative-taking debt repayer

Paying a bit extra or paying off debt with higher interest rates are two of the ways you can become a proactive debt repayer. If you are planning to buy a car or house, or start a business soon, paying off your debt first can contribute to making that dream a reality. Visit one of our stores to get your credit report today.

Have an emergency fund

Dhashni Naidoo, FNB’s consumer education programme manager advises people to save between one to two months’ worth of their monthly expenses as a back up plan. We suggest that you start with a small amount that you can sustain and work your way up. This fund will come in handy when you have an emergency.

Sell your items for instant cash

Selling your pre-loved items at one of our stores is a good option to get money in your pocket. You can use that money for emergencies or put them in the emergency fund Dhashni was talking about. You can sell us electronics, jewellery, gaming consoles and many more.

Need cash? Visit your nearest Cash Converters to sell us your pre-loved items.