How finance pros are adjusting their spending after the 2019 Budget Speech

We recently published a summary of the most pressing changes that were addressed during the 2019 South African Budget Speech. While some of these shifts were positive, and others were less so, the fact remains that consumers have to be nimble in their response to the national budget allotment if they want to remain ahead of the curve and keep their spending in check. Here are a few simple ways in which finance pros are adjusting their spending after the 2019 Budget Speech (and you can too!):

date: 25/03/2019Author:

Travel wisely

Fuel is going to become even more expensive as we head into the second half of 2019. Fuel levies will increase by 29 cents per litre for petrol and 30 cents for diesel. These below-inflation increases in fuel taxes together with the carbon tax on fuel will raise R1.3 billion for government, which is good, but it also puts a lot of strain on cash-strapped consumers.

What can you do? Try to swop out road trips for holidays closer to home; entertain at home; discuss the option of working from home with your employer if your industry allows for remote work.

Check your diet

The sugar tax (under the promotion of health levy) will increase to account for inflation, moving from 2.1 cents per gram in excess of 4 grams of sugar per 100ml, to 2.21 cents from 1 April 2019. This means that consumer products with high sugar content will become more expensive from here on out.

What can you do? Sugar tax is the government’s way of encouraging us to be healthier. Now is the time to adapt your diet – move away from processed foods like baked goods and soft drinks, and include more whole foods like vegetables, fruit, nuts, eggs, fish, etc.

Reconsider those vices

Sin tax is going up! Beer goes up by 12 cents, a 750 ml bottle of wine by 22 cents, a 750 ml bottle of sparkling wine by 84 cents, a bottle of whiskey by R4.54, a pack of 20 cigarettes by R1,14, and a cigar by about 64c. It may not seem like a lot, but it tends to add up.

What can you do? Sin tax is yet another move on government’s part to gain revenue for the national coffers while simultaneously shining a spotlight on the health concerns caused by smoking and heavy drinking. Curb your intake of these substances accordingly to save some money and boost your health.

There you have it – a few adjustments you can make to your spending in 2019 to ensure that your budget remains manageable despite the shift in the South African financial landscape. Keep an eye on the blog in coming weeks and month as we share more expert insight into prudent management of your personal finances. In the meantime, feel free to get in touch with a member of the Libertine Consultants team to learn more about our credit services and debt services.

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