Must-follow tips and tricks for budgeting effectively

With an increasingly high cost of living, there has never been a better time to take budgeting seriously – and leading South African insurance company Santam is here to help.

Santam has several tips and tricks that will allow you to reduce your monthly expenditure and increase your monthly savings – which can help reduce outstanding debt or build up an emergency capital reserve.

• Click here to see what Santam recommends for saving.

The first thing to do is to take a hard look at your monthly expenses and where your money is going.

The best way to achieve this is by developing a budget using the following steps:

• List your income – this includes your main salary, as well as any side hustles you may have.
• List all your fixed monthly expenses – like rent and bond payments.
• Finally, list your spending needs – such as food and medical expenses.

Once this is done, you’ll be left with your discretionary spending: items like restaurant bills and streaming subscriptions.

The most important part of creating a successful budget is then sifting through these discretionary expenses and determining what you can cut to meet your monthly saving goals.

Reducing costs

You can save even more money by determining which essential spending costs can be reduced, too, even if they cannot be negated completely.

For example: we have listed several ways to reduce your electricity bill:

• Switch off your geyser when it is not being used.
• Take advantage of natural lighting during the day.
• Only use necessary lights at night.
• Don’t leave your computer running.
• Unplug your cell phone charger when not charging.
• Don’t run the dishwasher without a full load.
• Only run your swimming pool pumps when needed.
• Hang your washing on the washing line instead of using your tumble dryer.

When it comes to insurance, this is where Santam can offer more than just advice.

Santam’s short-term insurance, value-add car insurance, and household insurance products can all help you save money when compared to its competitors.

You will also get access to a range of free extras, such as:

• Roadside emergency service.
• A chauffeured drive home if you are above the legal alcohol limit.
• Emergency household repairs for plumbing, locksmith, glaziers, and electrical.
• Legal advice from experienced attorneys.

Click here to see what Santam offers and recommends for reducing your spending.