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How to maximise your money in 2022

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This year has been a financial nightmare for many South Africans, with skyrocketing prices for fuel, food and electricity.

This trend is expected to continue into 2022, as retailers and others in the value chain pass on their business costs to consumers.

Even if people retain their jobs and receive salary increases, these are unlikely to keep pace with the cost of living.

A snapshot of 2021 price hikes reveals:

  • Fuel: petrol increased by almost R6/litre from January to December 2021 and breached R20/litre (Wheels24)
  • Food: a basket of common household foods cost 6.3 percent more in November 2021 compared to November 2020. Some items increased markedly, such as cooking oil (27 percent), eggs (15 percent), beef (15 percent) and margarine (10 oercent) (Household Affordability Index, Pietermaritzburg Economic Justice & Dignity group)
  • Electricity: the National Energy Regulator of South Africa (NERSA) approved an Eskom electricity increase of 15.63 percent for 2021. If you paid R1000 for a set number of electricity units in 2011, and used the same number of units in 2021, the cost was R2 736.03 this year (Cape Business News, June 24, 2021)
  • Vehicles: price increases have pushed many new vehicles over the R300 000 price point

“Now more than ever, it’s important to plan ahead and draw up a budget if you want to keep your head above water,” notes Shafeeka Anthony, marketing manager of personal finance website JustMoney.co.za.

Anthony offers tips for getting the most value in eight areas where we commonly spend much of our income:

  • Vehicle: service your car regularly, ensure the wheel alignment is on point, and that your tyres are correctly inflated. Make use of a loyalty programme, and earn points for every litre of fuel you purchase, for example Pick n Pay SmartShopper at BP. Accelerate gently and drive at a steady speed.
  • Grocery shopping: avoid impulse buys, don’t shop when you’re hungry, consider switching to less expensive brands, and compare prices – the most profitable items for the store are usually packed at eye level, so look around.
  • Banking: stick to ATMs within your banking network to save on withdrawal charges. Banking apps save time and money. Try to increase your monthly repayments on your home loan, to reduce the term and amount of interest you pay. Avoid drawing cash unnecessarily and choose the right account for your needs.
  • Data: use Wi-Fi whenever possible at a secure, legitimate source, disable automatic app refreshing and update apps over Wi-Fi only. Look for data-saving options in app settings.
  • Electricity: take a short shower and use an energy- and water-saving showerhead so there is less water to heat up again, use colder water settings on your washing machine and dishwasher, choose energy-efficient heaters and light bulbs, and turn down your geyser thermostat.
  • Healthcare: check your medical aid plan to ensure it’s still relevant to your needs, and make use of all benefits. Use hospitals and pharmacies in the approved network. If you have a fitness tracker, connect it with your medical aid scheme to collect points for your fitness.
  • Insurance: obtain a number of insurance quotes, but keep in mind that the cheapest is not always the best. Read the terms and conditions to ensure that you are adequately covered in case of a robbery or loss. If you now drive less than 10 000 kilometres a year, due to working from home, you are probably eligible for lower premiums.
  • Entertainment: check what you are paying for but no longer using, such as music subscriptions and gym fees. Do a weekly shop and cut back on ordering in. Spend time in nature, gain free access to books and magazines at your local library and online, and look out for special offers.

Examining your finances now and putting some realistic goals in place for 2022 will help you prepare for the inevitable challenges that the new year will bring, says Anthony.

If you have a financial advisor, this is a good time to set up an online meeting to review the year and make any necessary modifications. – Own Correspondent

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ANC deploys Dukwana-led task force to troubled municipality

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LEADING EFFORTS . . . Premier Mxolisi Dukwana

THE ANC in the Free State has resolved to deploy a task force led by the party’s provincial chairperson, Premier Mxolisi Dukwana, to deal with matters at the Matjhabeng Local Municipality.

This comes in the wake of mounting pressure from residents, employees and the opposition to sack the municipality’s mayor, Thanduxolo Khalipha, over poor service delivery.

“On Monday we convened a special provincial working committee meeting in Welkom where, among the critical items on the agenda, we had a discussion around developing workable solutions for the pressing issues the Matjhabeng Local Municipality is facing,” ANC Free State spokesperson Jabu Mbalula told The Free Stater.

“As a result, we instructed our provincial chairperson, in his capacity as premier of the Free State, to put together a team that will sit down with the municipality to address service delivery issues and other challenges they are facing.”

The task force will also include Dukwana’s deputy in the party, Ketso Makume, who is coincidentally the MEC for Cooperative Governance and Traditional Affairs and Human Settlements.

Last month, the municipality – which oversees the towns of Welkom, Virginia, Odendaalsrus and Allanridge –  had its bank accounts frozen by the High Court as a result of a legal battle with 15 service providers who were demanding over R750 million in outstanding payments.

“One of the issues the premier and his team will look into is that of service providers who say they have not been paid for some time and if there is validity and cause to act following a rigorous process of authenticating the claims, the team will make arrangements to settle the outstanding dues,” Mbalula said.

Matjhabeng has been battling to cope with labour unrest sparked by the local authority’s failure to pay its employees on time last month.

“As the ANC, we had a discussion with COSATU in which we also identified the need to engage with SAMWU,” Mbalula said, referring to the South African Municipal Workers Union that has been leading employee protests at Matjhabeng.

“There are instances where the union needs to take responsibility and hold hands with the municipality to ensure the delivery of services to the people.”

The opposition Democratic Alliance party this week requested the Directorate for Priority Crime Investigation, better known as the Hawks, to investigate allegations of “irregular behaviour” by Khalipha.

Press reports this week claimed the mayor had allegedly refused to pay three companies a total of R88 million for services rendered, “demanding a kickback of R4 million from each company”.

“At this moment we have found nothing warranting us to focus on the mayor,” Mbalula said.

“He has submitted a comprehensive report that shows how he has been trying to normalise the operations of the municipality.

“He has been trying hard to deal with the issue of service providers.

“By the way, 99 percent of the work at Matjhabeng was outsourced, but they have taken that back.

“Hence they have filled in some key positions and bought a new fleet of vehicles to cater for refuse collection and other municipal services.” – Staff Reporter

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Free State performs first kidney transplant in 10 years

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UNIVERSITAS Academic Hospital in Bloemfontein has successfully performed the Free State’s first kidney transplant at a public hospital in 10 years.

The transplant took place last Thursday and both the patient.

“This first kidney transplant at Universitas Academic Hospital is a major breakthrough in the resuscitation of kidney transplant services in the Free State,” provincial health spokesperson Mondli Mvambi said.

“This is after almost 10 years when these transplants were not performed in this hospital,” he added.

“Kidney transplantation is preferred as the most cost-effective kidney replacement therapy to manage kidney failure.”

This development is expected to give hope to renal patients in the province who faced exorbitant fees to get the procedure done at private facilities.

“This is good news for the people of the Free State and Central South Africa,” Mvambi said.

“(Without the option of kidney transplant services) only dialysis was done and it is considered exclusionary due to its prohibitive cost for universal access to the public.”

This week Free State MEC for Health Mathabo Leeto together with department head Godfrey Mahlatsi visited the transplant patient and her husband who donated the kidney.

They were joined by Universitas Academic Hospital chief executive officer Dr Balekile Mzangwa and other senior health officials.

“They are responding extremely well to the transplant,” Mvambi said.

The health spokesperson said the Free State currently has about 250 renal patients on the government register.

“We need to encourage people to donate organs whilst they are still healthy and alive, whilst not neglecting and underplaying the importance of organ donation from the deceased,” he said. – Staff Reporter

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