Johannesburg – The little financial relief provided by Finance Minister Tito Mboweni might go down the drain if you continue splurging money on drinks and taking unnecessary trips.
Making your money work for you should be at the top of your must-do list. National Treasury took steps to reduce the tax burden on lower and middle-income households.
If you are earning above the new tax-free threshold of R87 300, it means you’ll have at least R756 more in your pocket during the next tax year.
André Wentzel, solutions manager for Sanlam Retail Affluent: Recurring Savings, said the tax relief gives South Africans a chance to reprioritise their finances.
“Now is the time to re-examine money matters to feel in control and cut expenditure where possible.
“Disposable income gains from the personal tax relief may be jeopardised by significant spending on sin tax items and fuel levies,” said Wentzel.
“Be aware of the 8% increase in specic excise duties on tobacco and alcohol.
“A 340ml can of beer will cost 14c more, a 750ml bottle of wine 26c more, a 750ml bottle of sparkling wine 86c more and a 750ml bole of spirits R5.50 more,” he said.
Quitting alcohol is hard and for some people that is not even an option – but there are ways to minimise the impact it will have on your financial wellbeing.
Tips for not drinking away your money:
• Prioritise happy hour.
• Drink at home.
• Prioritise a social place where you’re allowed to bring your own drinks.
• Join a wine club. Those who like cruising around town will also feel the impact on their wallets. From April, fuel levies will increase by 27c/l, Mboweni said as he again turned to motorists to squeeze funds for the fiscus.
While we cannot control fuel levies, we can control how far we stretch the petrol rand. Consider the following tips to save money on fuel:
• Inflate tyres to the correct pressure: If you can’t tell from how your car handles that your tyres aren’t the right pressure, then your fuel economy should tip you off.
• Use the smaller of two cars: If your household has two or more cars, use the more fuel e©cient one wherever possible.
Get into the habit of using the other bigger cars only when necessary.
• Try to avoid prolonged idling: Running the engine at idle consumes roughly half a about 4l of fuel every hour.
Not only that, it causes more pollution. If you are waiting for someone to get in the car for longer than two or three minutes, you are far better o¡ switching the engine o¡ than leaving it running.
“It’s about budgeting properly to secure your financial future.
It will be a long road, and you may have to make sacrifices along the way, so celebrate each small ‘win’ that takes you closer to achieving your goals.
“Live with confidence, have a clear picture of what you want the future to look like and take deliberate steps towards this,” said Wentzel.
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