How the War Affects Your Wallet

By observing the ongoing conflict between the Russian and Ukranian nations reaching new extremes – it’s clear that countries are struggling all around the globe. Ever-growing prices, rising interest rates and shrinking incomes create a messy situation, with no definitive end in sight.

One of the glaring problems we face as consumers is the price of fuel. As South African Citizens, we were blessed to have the SARB keeping the economy going from the start of the pandemic. However, interest rates have been raised – this was done to combat the skyrocketing global inflation. The best advice for any current or prospective car-owners would be to acknowledge the fuel efficiency of the vehicle they are purchasing. By following this and drawing up an appropriate vehicle budget will certainly keep you safe for the foreseeable future.

Due to the price increase of fuel – the transportation of fresh produce, meat and everyday grocery items will be much more expensive. The end result- foods that were once staple and highly affordable run the risk of nearly doubling in price. This means that many families below the breadline or just barely straddling it can face incredible hardship. We can use bread as a prime example of this. An affordable and staple food for many a South African Citizen, can face incredibly drastic spikes in its price due to the increasing wheat prices. Something that was once an everyday commodity – may potentially become a luxury for those willing to pay the price of admission.

The war has left an incredibly dire impact on the global economy. With trade sanctions being strained and downright refusal of cargo ships leaving the ports, there is no denying that we can expect to face some hardships over the next few months. As stated, we have no clear idea as to when the conflict will begin to subside. All we can do in pressuring times like these would be to implement preventative measures to protect us from these price hikes.

Start looking at a transport alternative. Many businesses still offer the ability to work remotely – allowing you to save on your commuting costs. Another great tip is to ensure that your car has the best possible fuel consumption technologies – allowing you to travel further while using less fuel. When it comes down to food – your wallet can dictate whats right for you. If you have a family depending on you for food – bread might not be the best possible option anymore. Always try and compare prices at supermarkets.

At Debtco Group, we strive to help those in need of financial relief. If you want to take the first step towards a debt free future – contact us today for further information.