EMERGIVAC - Inflation: Why is it so high, and what can you do

Inflation: Why is it so high, and what can you do

Inflation: why is it so high, and what can you do to cut costs?

With inflation in South Africa now at the highest level in over a decade, everyone is feeling the pinch. Food and fuel prices have skyrocketed, the cost of living is rising, and salary increases are not keeping up.

Why is inflation so high right now?

There are a number of forces driving inflation in South Africa and around the world, but essentially the root cause is a combination of three factors:

Huge demand for goods and services as countries around the world came out of lockdown, overwhelming the available supply
Higher commodity prices as a result of the conflict in Ukraine
Rising energy prices, which are eventually passed on to consumers

The good news is that this ‘perfect storm’ won’t last forever – most economists agree that by mid-2023, inflation will start to ease as the global economy recovers and supply catches up with demand.

In the meantime, here are some ways you can cut costs and keep your spending in check:

Review your budget

The first step to cutting costs is to take a good hard look at your budget and see where you can save. Track your spending for a month or two to get an idea of where your money goes, then cut back on unnecessary expenses.

Shop around

Don’t just buy the first thing you see – take the time to compare prices and look for deals. Use websites like PriceCheck to find the best price on products, and take advantage of loyalty programs to save money on daily essentials.

Cut down on credit

If you’re carrying a lot of debt, now is the time to start paying it off. The interest you’re paying is adding to your overall costs, so focus on clearing your debt as quickly as possible. A good way to get started is using the ‘snowball effect’. Focus on your smallest debt first, and pay that off as quickly as possible. Then redirect the payments you would have been making towards your next smallest debt, and so on.

Do it yourself

There are a lot of things you can do yourself instead of paying someone else to do them. From cooking and cleaning to home repairs and maintenance, there are plenty of ways to save by doing things yourself.

Consider cheaper options

Rather than cancelling important services or subscriptions outright, see where it might be possible to downgrade. Insurance and medical aid are a prime example. You don’t want to be caught without them, but you might be able to save a lot of money if you switch to a cheaper plan.

Affordable Medical Aid

If you’re already with an affordable medical aid provider for instance, you could review your plan and see if you’re paying for extras you don’t really need. Because they don’t want to lose you as a customer entirely, many affordable medical aid schemes will be willing to negotiate.

Another option is to replace your medical aid with an affordable medical cover product like EMERGIVAC. For as little as R249 a month, you can access emergency medical assistance including guaranteed hospital admission, as well as heaps of additional benefits like our armed response, roadside and household assistance offering. Peace of mind without the hefty price tag!

Find out more about the benefits of joining EMERGIVAC here, or feel free to get in touch with one of our friendly reps for more information.


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