The petrol price went down, but word on the street is that it may go back up again soon; best we reap the rewards before that happens.
Whether you are taking the taxi, or driving you own car, the petrol price affects us all. When it increases it will ultimately determine how much you pay for your groceries.
Bruce Fleming a certified financial planner urges you to take advantage of the now decreased petrol price, and gives you three tips to consider when you want to better manage your money during this time.
SAVE IN AN EMERGENCY FUND
With less money to pay for your full tank you now have that spare cash. Instead of wasting it, put it away in an emergency fund account. One of those unforeseen expenses may be an increase in the price of petrol. If you are able to save the decrease, this emergency fund could subsidise any future increases, and see you through the first couple of months without pinching your budget.
THINK LONG TERM
Work around your taxi fee by putting away extra cash each month. If the petrol prices were to increase again, you can even reduce this saving by the increase, but keep the capital invested. That way you can take advantage of compounding growth.
PAY THINGS OFF
This is debt that has a high interest rate, such as unsecured loans and credit cards. The quicker you pay off this debt, the less you will pay in interest.
