Common things we overspend on that kills our budget One of the many causes of having too much debt or not being able to service your debt obligations can be due to overspending. Never fear, you not alone. Overspending is so prevalent in the country, so much so that it is said to be the shocking reason over 58% of South African consumers have no money left at the end of each of month. While some South African’s have the restraint and ability to change their bad spending habits it is often not the case with many consumers. Attempts to cut back on expenses are usually short-lived due to a budget that is already uncomfortably tight. Why? Perhaps because some of the things we are overspending on are emotional of nature; things we feel we cannot live without and convincing ourselves to constantly overspend.You might not realise it, but you could be guilty of overspending. If you’re not sure, then check out our list of everyday things you can and should cut back on now:

 

Convenience food

Convenience and "streetwise" food items such as snack bars, ready-made meals and sandwiches, in addition to pre-sliced and peeled vegetables and fruits are making consumers’ lives so much easier. However, they are also racking up quite the bill.

Solution:

To cut back on the unnecessary purchases, make weekly meal plans and shop from a list. Attempt to even buy in bulk. You could start some fun activities with your spouse and family and even make your own snack bars by buying bulk seeds, nuts, dried fruit, honey etc. As with everything time is always an issue so set aside one morning or afternoon once a week to do all the prep work for the upcoming week. The same approach can be applied with you daily meals by simply freezing your daily portions.Safety Tip: Don't shop while hungry! Trust me, you are guaranteed to end up spending much more than you planned for.

 

Coffee

I must admit, before getting into the day where we crunch the numbers and put on our thinking caps, that cup of coffee on our way into the office seems like the right thing to do to get us in working mode. While hitting your local coffee house may seem convenient, spending this much to get your caffeine fix just isn't practical. If it is a once a week thing, it is perhaps not such a big deal. However, the daily dosage of a paid cup of coffee could cost you around R625 a month – you could save R7500 per year on coffee only. I reiterate that I am aware that many of us cannot function without coffee, but it doesn’t mean you should pay someone to make you one every time you have that craving or need that boost.

Solution:

Make coffee in a flask for the trip to work. If you want to look forward to a “special” cup, then perhaps buy cappuccino sachets or flavoured coffee – it will still work out cheaper.

 

Bottled water & soda drinks

Yes, sure we all deserve that refreshing thirst quencher. But consider the costs for a moment. If you spend R20 a day on a cold drink, water, smoothie or the like, it adds up to R100 a week and R500 a month. Is it worth it? Not only are you paying for these sugar-sweetened beverages at the cash register, but you're also paying with your health.

Solution:

Instead of spending your cash on costly bottled water, opt for an inexpensive filter on your sink or for a filtering water bottle, which in the long term turns out to be way more cost effective.Alternatively, drink free water at the office, or alternatively, when doing the grocery shopping, buy your water too in bulk and take it to work so that you don’t rake up that cost. It is the healthier alternative and its FREE!

 

Groceries

Grocery shopping for many is seen as a chore and for those who do, it’s easy to get stuck in a routine purchase cycle and buying the same goods regardless of price and not checking out alternatives. Let’s not forget our impulsive nature because the way the chocolates are stacked up looks way to pretty.

Solution:

Don’t be fooled by brand names, the hypes and fads by the intriguing strategies employed by businesses to suck you in. Make the list and stick to it. Remember, FMCG brands are constantly in a battle with one another competing for that consumer spend and the pricing strategies might be attractive but think how unattractive your balance will be once purchased. The impulse buys could also end up costing you because you end up with items you don't really need and because you may buy items that are costlier or less reliable since you haven't done research before your purchase.

 

Unused memberships

Many of us have unnecessary subscriptions to newsletters we don’t read, online streaming portals we don’t use and let’s not forget, the gym membership that we never have time for.

Solution:

Take a glance at your statement and identify what is in use and what is no longer benefiting you. Even if that intention is there and you keep trying to convince yourself that one day you will, leave it for when that day arrives. Ask yourself whether you really get value out of the money you're spending each month. As it is now, its basically money being thrown away.

 

Clothing

Consumers are relying heavily on store credit to fund clothing and other household items they cannot afford. Paying it off over 6 to 12 months makes purchases seem affordable and worth the investment. However, how many times have you bought something on credit while knowing deep down that you would never pay that amount if you were paying cash? Also, by the time you’re done paying those items off, the season, trend and comfortable fit is probably worn out

Solution:

Before shopping for new clothes do a stock take of your wardrobe and sell or swap clothing you won’t be wearing again. Give an old dress or outfit new life with a scarf or other accessories. Try and pay off all your accounts and instead allocate a smaller budget towards clothing. This way you can buy something new every month instead of always paying off last year’s purchases.If your overspending has spun out of control, contact Kudough for the guidance you need to get out of debt and become financially free. Manage your finances effectively

If you still need help with your savings and you’re feeling overwhelmed by your current financial situation, we have the necessary expertise and guiding tools that will assist you in getting back on track. To Speak to one our consultants and start to manage and grow your dough today Click here, and within 30 seconds you will be on your way to financial wellness with Kudough, helping you get better at credit so you can get good credit.

BACK TO SUB CATEGORY LIST