Do you know?

‘Do you know how much you spend each week/month?’

This is one of the first questions I ask potential clients during the 20-minute free discovery call.

It is important to me that when a client comes to me to learn how to reduce their household bills, they understand how much help they need.

I don’t want a client to book 6 sessions when they only need one, the same as I don’t want a client to think they only need one when in reality they may need 6 sessions. Maybe attending the workshop would be better. http://kasheringyourlife.co.za/workshop/

Do you know how much you give away?

I then ask them to write down what they think they spend and then for the next two to four weeks I ask that they keep every till slip and also keep track of any money they give to car guards and beggars.

For the most part, the reality of what you spend bears very little resemblance to the truth.

We think we know, based on how often you go to the store to buy groceries but what about the hidden costs? The car guards, the petrol to and from the stores every day, the items we buy on impulse while walking around the stores.

Hidden spending

The food that goes off and needs to be thrown away, counts as double. This is because you paid for it when you bought it and then threw it in the dustbin when it wasn’t used.

As I have said previously, I am not a financial expert or advisor. I can’t help you with investments, medical aid or insurance advice. I can help you with your household budget.

For a family of 4, my high-end estimate is R 3000 per person per month; this is including toiletries and household cleaning products. http://kasheringyourlife.co.za/10-tips-help-save-when-shopping/

This is a large amount but it is more than 70% of South Africans are living on each month. It takes into account buying your groceries at the more expensive stores and not making use of loyalty points, digital coupons and rewards programs. Do you know what you are spending?

Most people in the middle to upper-income groups can bring their household bills down by at least 5% per month.

Start with small habits, like never shopping when you are hungry, using a shopping list and doing your best to stick to it.

If you are a daily shopper, begin by going only every second day, until eventually you only go to the store weekly. Start meal planning and only buying what you need.

Try shopping at a mall or hypermarket where you can do all your shopping under one roof; this way you only pay a car guard once and reduce the amount of petrol you use.

Give this method a try and see what happens. Join the Facebook group https://www.facebook.com/groups/iamdebtfree/ and share your experience.