Soccer Fever makes for foul budgeting in 2010
January 2010Ladies and gentlemen, haul out those spreadsheets and calculators because, once again, it's time to prepare the annual household budget. This year, prudency and inventiveness is more crucial than ever before as 2010 FIFA World Cup fever comes to town.
"An annual household budget is fundamental to ensuring that you live within your means. We all know it's an important task to carry out, yet many of us do not make the effort. This year however is an exception as consumers will have to brace themselves for a sharp increase in household expenditure before and during the 2010 FIFA World Cup," says Melody Redman, general manager of Budget Insurance Brokers.
It has been reported that during the 2010 FIFA World Cup we will experience price escalations of between 200-500%. And, if you think that's just for sky-rocketing accommodation and flights, you are mistaken.
"Global food price increases will coincide with the World Cup, so will electricity hikes and the price of petrol, which is expected to increase between four and five cents this month (January) according to Standard Bank economists. The reality is, we need to be prudent with our expenditure in order to soften the inflation blow in 2010, which may be aggravated by an influx of World Cup soccer tourists," comments Redman.
World Cup fever is expected to significantly boost South Africa's revenue for 2010. Therefore tourists travelling with foreign currency will be able to afford the expected level of inflation. It is South Africa's residents who will really feel the pinch and should start a savings plan.
The biggest thorn in South Africa's side when it comes to inflation in 2010 is electricity hikes, according to Economist.co.za, with 2008 having seen a 31 percent increase and a 27.5 percent increase in 2007.
"As South Africans witness the rocketing transport, accommodation and food prices, it is crucial at this point that all households are careful with their monthly expenditure and try wherever possible to work on a budget that accommodates the ever increasing costs of living, especially when World Cup Fever hits SA," Redman continues.
Budget Insurance suggests the following tips to assist South African households in saving money when World Cup Fever hits:
- Switch lights off whenever you leave a room – this could significantly cut electricity bills.
- Do not leave computers and televisions on standby – this too reduces monthly bills.
- Go to a supermarket with a list and stick to it.
- Car pool where possible – this is also better for the environment.
- Shower instead of bathing as this uses less water as the more hot water used, the higher your electricity bill.
- Wear warm clothes instead of turning up heaters and thermostats.
- Buy in bulk. The more you buy the cheaper an item per unit becomes.
- Light bulbs should be replaced with compact fluorescent lights lamps (CFL). These use substantially less electricity and have much longer lives.
- Do not fill the kettle when you only want enough water for a single cup- only boil the water you need.
