How To Budget To Afford Your Insurance Premiums

A lot of South Africans have to adjust to doing more with less because of rising interest rates, petrol, and electricity and food prices. Since January 2015 the South African Reserve Bank has raised interest rates by a combined total of 75 basis points. Furthermore to stiff inflation that is still on the rise, and tariff increases that have affected staples like bread, milk, electricity and petrol, we are starting to feel the pinch. Let’s take a look at how to budget properly this year.

In these tough times, many people feel the need to cut back on important expenses like insurance cover, to alleviate financial pressure. This although, only places even greater pressure on us in the long run and exposes us to greater financial risk. It’s not ideal to stop paying your life or funeral cover premiums because you can lose all your benefits, with no refund of the premiums you have been paying since the beginning of your cover. You should look at other options to help you save a bit more money to afford your premiums and other household necessities.

Tips on how to budget to better manage payment of your insurance premiums:

  • Small lifestyle changes: You should consider avoiding peak traffic or opting for more effective ways to travel like making use of public transport or Uber. This could see you saving a lot of money in terms of petrol expenses.
  • Shop wisely: You should pay attention to retail specials for household necessities like food. Sometimes it’s cheaper to buy certain goods in bulk to last you a few months.
  • Use loyalty benefits: Nowadays most retailers have implemented loyalty programmes. This has even extended to the banks, as they have taken to rewarding people for using their cards instead of cash. Familiarise yourself with how these programmes work to be able to save a bit more.

Another helpful tip is to compare different insurance products to find the best possible deal. Make use of Likemoney to do so.

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