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5 Sep 2012

Rising Petrol Prices

Do we fully understand what the rising petrol prices mean? It means we are doomed!!! Most of us forget that prices of everything are directly affected by the rise in fuel prices. Lets forget about luxuries and think basics...FOOD. For experimentation purposes, if you go grocery shopping today, keep your till slip to compare to your grocery shopping in a week or two. The same food basket will cost you more because it was supposedly transported by the 8.4% higher priced petrol.

Coping with Rising Petrol Prices in South Africa

Yes, the petrol price rises by a whooping 8.4% today. Apart from other reasons like rising oil prices and the weaker rand, the wage increases for pump attendants at filling stations seem to be one cause. An additional 8.4% translates to R11.97 a litre of petrol inland whilst the diesel price's 6.7% rise means R10.95 for a litre.

Is anyone as angry as I am that the public transportation in South Africa is in the state it is in. Car ownership has become one of the basic needs for South Africans. We often interpret that statement as "a luxury car is a basic need". In case you are wondering, we still have a lot we can do to save ourselves from the high cost of living.

How I Cope with the Rising Petrol Prices

Off course I hardly ever drive. Its not an advise for everyone though. I am blessed to be working from home and online, maybe for now. My car battery dies all the time unless the hubby drives it around a few minutes per week. I walk to go do my small grocery shopping.

I am not buying a new car any time soon, make that in a few years. That means that I don't have any car installments to pay in the few years. I am keeping my fingers crossed that I don't snap and go buy the car of my dreams within that period. I am so enjoying not worrying about the car installment. It must be the most painful thing to worry about, when one has a lot of other financial commitments to take care of. Especially if those commitments are DEBTS.

If hubby buys a new car, because buying his French car was one of our worst mistake, we will go for something modest and do so for cash. That means we have to have a car fund going, and sadly we don't. We will open a second emergency fund (Money Market account) set up in hubby's name for that purpose. We obviously cant use my existing money market to avoid taxation on interest. Remember that the exempt portion of interest earned is now R22 800 a year. I feel we are being discouraged from saving.

I don't have any credit card and I never had a petrol card. I know about the benefits, the reward programs, the convenience, blah-blah-blah. I don't have time nor energy to look at all that. I will have to look at that in future. To see if the annual fees are low enough for me to overlook.

We are sadly not buying a new house either. This has nothing to do with rising petrol prices however. We just decided to take advantage of the opportunity that presented itself. I am investing in another rental property in a small town. I know I have all the rental property that I planned to have, but I couldn't resist the temptation. I am all so excited about it but will give details later.

My monthly budget is still a work in progress. There are luxuries that I cant let go of yet. I work very hard and some luxuries make this journey to be worth every sacrifice.
What are you doing to cope with the rising petrol prices?

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