Cars are expensive to keep. Not only does their value constantly decrease, but they also need petrol, which is becoming ridiculously expensive in South Africa and requires all kinds of pricey maintenance.

1. Use public transportation. It saves monthly car payment instalments, insurance, fuel, parking and maintenance costs. Having a roof over your head and medical aid is more important than having a car.

2. Sell a vehicle that you own that is rarely used.

3. Carpool to work. Sharing a ride to and from work with someone else can significantly reduce wear and tear on your car and save on petrol.

4. Keep the tyres on your car properly inflated. Once a month, stop by a local filling station that offers free air and check the air pressure in your car tyres. Every two PSI of air you add to your tyres can improve your petrol /km by 1%.

Any time you can reduce how much money you owe, it will lower your ongoing monthly expenses. For starters, paying off debt means fewer monthly bills, leaving you with more money to save. Here are a few ways to reduce debt and save money over time.

1. Consolidate your student loans.

If your student loans are locked in at a high interest rate, figure out whether it makes sense to consolidate all or some of them. It could save you money every single month.

2. Consolidate your debts using a balance transfer card or personal loan.

A balance transfer might be a good option if you carry debt with a high interest rate. The best balance transfer cards offer perks such as 0% APR for up to 18 months – and some even offer rewards programs. A 0% APR offer can help you pay down your debt and save money on interest. If possible, factor in the balance transfer fees and pay down the entire transferred balance during the introductory period.

If you have high balances on multiple credit cards, utilising a debt consolidation loan can also make sense. These loans allow you to combine several high-interest debts into one personal loan, ideally having a lower interest rate than your current debts and enabling you to pay down your debt faster. As with balance transfer cards, consider any upfront fees and make your monthly payments on time.

1. Check your loan rates.

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.

2. Request a credit card rate reduction.

If you have a relatively large balance on your credit card, call your credit card company and request a rate reduction. They may be willing to negotiate if you pay your bill on time every month. If they don’t go for it, get a 0% balance transfer onto another card with a lower rate. If you have a history of late payments, a credit card for bad credit can help you rebuild your credit score and qualify for cards with better rewards and lower rates in the future.

• How does a credit card work? How does a credit card work? A credit card lets you spend money on credit – it’s like having a loan for the amount you spend using it. It depends on how confident your card provider is that you’ll repay it. If you pay off the bill in full each month, you won’t pay interest on what you’ve borrowed.  If you have a strong sense of discipline and pay off your card at the end of each month or, even better, prepay it at the beginning of the month, then a credit card could save you on transaction fees.
• Why should you never get a credit card? You don’t have enough income to pay off a credit card balance. If you only work seasonally or part-time, you may not have enough money to pay a credit card balance. Getting a credit card without enough money to pay the bill can lead to debt troubles and damaged credit.
• What are the disadvantages of credit cards? Blowing Your Budget — The biggest drawback of credit cards is that they encourage people to spend money they don’t have. High-Interest Rates and Increased Debt — Credit card companies charge you an enormous amount of interest on each balance that you don’t pay off at the end of each month

2. Sign up for automatic debt repayment plans.

Many instalment plans, particularly those associated with student loans, offer an interest rate reduction if you sign up for automatic monthly billing. You should never pass these up – not only do they save money automatically each month, but they’re also incredibly convenient and ensure you won’t miss a payment or incur a late fee.

3. Sell unused items.

Dig through your closets or attic and look for items you no longer use that may have value, then sell them on eBay. You can then use the money you bring to pay off debt and put it behind you.

From hot summers to cold winters and all the gadgets we plug in, we spend a lot of money on energy bills. We have an energy crisis in South Africa, and electricity has become very expensive.  Fortunately, technology has brought us a few practical ways to improve energy efficiency and lower that figure.

1. Install CFL or LED light bulbs.

If you’ve never updated the light bulbs in your home, consider switching to CFLs or, better yet, LEDs. These bulbs are about four times more energy-efficient than incandescent bulbs and last many years. One tip: When comparing bulbs, use the lumens number to compare bulbs, not the equivalent wattage. Lumens indicate the actual amount of light emitted by the bulb.

2. Unplug all unused electrical devices.

Are there any electrical devices around the house that stay plugged in but that you rarely use? Most electronic devices constantly draw a small amount of electricity, a phantom charge, that can add up quickly when considering how many devices and small appliances you own. Unplug any items or power strips you use infrequently to eliminate that usage.

3. Buying prepaid electricity

The more electricity you buy in a month, the more you pay. For prepaid customers, it has nothing to do with how much you use – the cost is purely based on how much you buy. Electricity buying in bulk is not a good idea. Instead, buy from week to week or just enough at the beginning of each month to keep you going. It’s cheaper to top up with a few units at the end of each month than to buy enough for two months.

4. Lower the temperature on your water heater.

The water heater is a major energy drain in most homes, accounting for about 14% of energy costs. Often, the water is kept more desirable than most people ever need, plus the heat is constantly lost to the environment, meaning you have to burn more energy than ever to keep the water so hot.

Solve both problems by dropping the temperature to 60 degrees Celsius and installing a water heater blanket to keep in the heat – a blanket can pay for itself in about a year, after which you’ll save money monthly. While you’re at it, insulate any exposed hot water pipes for additional savings.

Many people look at entertainment as the first thing to cut when trying to trim costs, but they often forget to look at the regular expenditures that slowly eat away at your financial foundation month in and month. Here are some things to consider that you may have overlooked before.

1. Cancel club memberships.

Look at expenses such as gym memberships, memberships with the local country club, etc. How often do you use these services? Try cancelling any infrequently used memberships.

2. Reduce or eliminate your DSTV account.

Most people can find a cheaper way to access their favourite shows if they try hard enough (Netflix). Perhaps you could downgrade DSTV from Premium to EasyView, or cancel it totally.

3. Look for inexpensive entertainment options.

Do you use your local library? Do you attend local community events like music festivals and art fairs? Are you aware of local volunteer groups and organizations? Your community may offer plenty of options for inexpensive or free entertainment.

4. Find new ways to reduce travel expenses.

We live far from our extended families, so we know about travel costs. To save as much as possible, we reduce the travel cost by booking fares in advance to get the best prices.

5. Cancel newspaper and magazine subscriptions.

The price of daily or weekly newspapers and magazines can add up to a tidy sum. Why not watch the news on TV or read it on your cell phone or laptop? If you need reading material, hit up your local library instead. Second-hand bookshops offer great books at much reduced prices if you love reading. It is a great way to recirculate books you have finished reading.

6. Consider reducing/eliminating other regular paid services.

This includes a garden, ironing and home cleaning services. Is the money you’re spending is truly worth it? If not, drop the service and look for other options to accomplish the same thing for less, like doing it yourself or as a family.

A culture of eating fast foods has emerged lately. People are often just too lazy to cook meals themselves. There are ways to eat cheaper.

1. Cook (and pack) your meals at home.

When you cook at home, make a lot of whatever you’re preparing so you can freeze some of it for future meals and, even better, take some leftovers to work for lunch.

2. Reduce or eliminate eating out or getting take-out.

Take-out and dining out can be a nice luxury and a huge time-saver for a busy family, but the expense can be tremendous. Instead, look at other options to make dining at home more convenient — for example, prepare lots of meals at once and freeze them for easy cooking later. Meanwhile, focus primarily on simple recipes and choose recipes that use fresh produce in your area during the season.

3. Buy non-perishable items in bulk.

Many people never even bother to look at some of the larger packages of non-perishable items—they think it’s too much. Try looking at the cost per unit of all sizes and choosing the one that’s the best deal—spread out over months, which can add up to a lot of trimmed fat.

4. Start a fruit and vegetable garden.

Vegetable gardening is a splendid hobby that can often turn a profit if done right. Focus on vegetables that are easy to grow and produce abundant fruit, like tomatoes, and learn how to can and store the excess.

5. Buy house brands when you can.

Many products (not just food) are available in store-brand or generic form for significantly less money. Look carefully at the ingredients in generic and name-brand products to see how similar they are. If they’re close, use the generic one regularly to trim money from your shopping bill.

We all need insurance to protect against the unexpected. But when we overpay for insurance, we leave ourselves vulnerable in a different way. Look into these options for ways to reduce your insurance premiums.

1. Downgrade your medical aid, but be on one.

Medical aid in South Africa is costly. If possible, it is better to have hospital cover only than not to have medical aid at all. If you cannot afford to pay premiums for full cover, opt for more slim-lined options that suit your budget rather than cancelling it. This is particularly fitting for people who don’t rely on regular medications or go to the doctor all that much.  It is risky to depend on government health services in South Africa.

2. Shop for house and car insurance (or bundle them together).

Get a few quotes to get the best deal for you. Also, revise your insurance every year to make sure you are covered. Most insurance companies also offer discounts if you bundle your homeowners and auto policies.

If you’re still looking for ways to reduce your monthly expenses and save money, it’s time to dig a little deeper. These suggestions can help you find all the potential savings in your monthly budget.

1. Lower your cell phone bill.

What is the least amount of data and airtime you can handle? South Africans spend vast amounts of money on the latest cell phones and data. The type of cell phone is not a reflection of your wealth.  You don’t have to upgrade every two years, and you don’t have to buy the top phone in the range.

2. Consider cheaper childcare options.

Compare childcare options in your area to see if a cheaper alternative would be better. Or get creative in cutting back your existing childcare by a day or two — for instance, look into a nanny-share arrangement, or try working a later shift once a week so you can be home during the day. If you’re lucky enough to live near grandparents, they might be willing to watch the kids part-time while you work.

3. Reduce or eliminate organized child activities.

The high cost of children’s sports can spiral out of control if you don’t keep it in check. To minimize these costs, look at the actual expenses of any sport or activity before letting your children sign up. Kids don’t have to take part in everything.

4. It is okay to stop tithing, at least temporarily.

If your budget is bursting at the seams, consider cutting back on your religious tithing. If this spiritually troubles you, talk to your spiritual group leader about the issue – they’ll usually be very supportive if you need some time to get your house in order. Once you get back on your feet, you’ll likely be able to give even more than you did before.

5. Stop buying so much clothing.

How many clothes do you actually need? Buy clever and only what you need. Refrain from buying brand names. If you can knit or sow, consider making your own clothes. You can make 4 high-quality dresses for the price of buying one.

6. Reduce grooming expenses.

Instead of having your hair cut and styled weekly, cut it back to once a month. If your hairstyle costs a lot to maintain, consider a simpler, easier-to-care-for style. If possible, colour your hair yourself for a quarter of the price of a salon colour. Do your nails instead of opting to visit a salon.

7. Reduce or eliminate consumable habits (such as smoking, alcohol, etc.).

8. Learn to say no to people who entice you to make  debt

We receive calls from companies offering us ‘’great deals’’ every week. If you have any financial ‘’savvy,’’ you will realize they entice you to go deeper into debt.   Say no if a cell phone company calls you to offer you a new phone or contract. If a bank calls you to offer you a higher overdraft on your credit card – say no. If you receive the offer of a clothing store card with promises of spending R 1000 and receive a voucher for R 400 – say no. These are all ways they try to get you to purchase more stuff you don’t need and can’t afford. Get rid of store cards that allow you to buy on credit. Most of the time, you will buy more than you can afford. Learn to pay cash. If you don’t have cash, you don’t buy.

9. Avoid getting rich-quick schemes / online predators.

Be wary of people calling you to invest in schemes to make a quick buck. Making money is always hard work. There is no such thing as getting rich quickly. Do not be enticed to invest in online schemes. Never pay money into the bank accounts of people that you meet online. More than 500,000 predators online daily are looking for soft targets.

10. Do not lend money to anyone

While it is okay to stand as security to cover your child’s student loan, do not lend money to anyone outside your family – not even uncles, aunts, nephews or nieces. If the person couldn’t even secure a loan from a credit provider, chances are good. They will never repay you.