Old Mutual Personal Finance suggests that households revisit their income and expense spread sheets often, especially during periods of rising inflation and interest rates. “After nine rate hikes, South Africans are effectively in round nine of a cost-of-living boxing match, without much certainty about how many rounds they may still need to face.”
You can, for example, cancel a streaming or app subscription and resume later at similar subscription rates. However, if you cancel your life cover, it can result in significant premium increases based on new age or health conditions. We are at a difficult point in the interest rate cycle but this situation will play out and we will gradually revert to the average, says Budhram. “We encourage households not to turn to short-term solutions to assist with their budget shortfalls but instead find more creative ways to navigate this part of the cycle.”Two-stage budget review
Remember you can only do a successful budget review if you have accurate, up-to-date figures, strip out emotion and if possible, get advice from a trusted, objective third party such as your financial adviser.