After a few weeks of exciting talks and reviewing Finance Minister Pravin Gordhan’s Budget Speech, people are starting to have confidence in the economy. Taxpayers, for example, heaved a sigh of relief when the budget didn’t contain any income tax hikes.
Consumers do not have to be over-indebted and take out loans to survive on their income
By making a few strategic changes, consumers may even find the money for the odd luxury here and there. Yes, things such as fuel and food are expensive, but start planning creatively; for example start a lift club to and from work, with fellow employees who live in your area. You will be amazed to see the difference in your budget if you start to cut on small things.
If you want to save more money to get by with your present income, cancel club memberships; if you have student loans, consolidate them; and if you are really serious about saving on expenses, take lunch to work; if you buy lunch at R50.00 every day for a year, the total adds to an astonishing R15 000.00 per year!
Relief for taxpayers
Now, if you add all your innovative ways of saving money to the Minister of Finance’s relief on individual paying tax, there’s already more money available to save than before. Here’s an explanation of the new tax figures and how it will bring you more money in your pocket:
If your monthly salary is R15 000, you will pay R20.00 per month less, which adds up to R240.00 per year.
If you earn R23 675 per month, you will pay R40.67 per month less, which adds to R488.00 per year. If your monthly salary is R31 666.00, you will pay R80.25 per month less, which totals an extra R963 per year.
Budget, budget, budget
If you commit to living within your budget, a lot of unnecessary stress will fall away. It’s a good idea to take those tax savings and set it aside for gifts or pocket money for your holiday at the end of the year. That way you will be using cash, not credit, for your December fun! However you decide to do it, it is important to remember that cash in your pocket is much better than to use your credit card with its high-interest rates.