Simple Household Audit to Identify Potential Savings
Renier Botha is a Cape Town-based entrepreneur and financial lender with over 13 years’ experience in the short-term lending space, supporting individuals and families across South Africa. He is passionate about turning his financial acumen into real-life budgeting and saving advice for modern life.
A financial specialist has shared how SA households can find savings of up to R3,000 monthly through a simple DIY financial audit of their spending habits.
Source: Original
Renier Botha, founder of Southern Finance, said most families across different income brackets have significant "hidden" savings potential that can be uncovered through a structured review of monthly expenditure patterns.
The financial audit process
The financial audit process outlined by Botha involves analysing spending across key household categories, including food, transport, utilities and discretionary purchases to identify where cuts can be made without affecting quality of life.
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"The statistics show that most households spend far more than necessary in at least three key areas, with food and utility bills often offering the quickest wins for immediate savings," Botha said.
He noted that grocery spending typically offers the most substantial opportunity for reduction, with meal planning and bulk purchasing strategies potentially saving households up to R900 monthly.
"Many people shop without a clear plan, resulting in impulse purchases and food waste. Simply creating a weekly meal plan before shopping can reduce grocery bills by 15 to 20 per cent," Botha explained.
"Another strategy is buying household staples in bulk during promotions, which creates consistent monthly savings that quickly accumulate."
Potential saving
The second biggest area for potential saving, according to Botha, is subscription services, with many households paying for multiple streaming platforms, unused gym memberships or forgotten app subscriptions.
"Most clients we work with are genuinely surprised when they list all their subscription services and find they're spending R600-800 monthly on services they rarely use," he said.
Utility bills represent the third major saving opportunity, with better energy usage habits potentially saving R400-600 monthly.
"Simple changes like switching off appliances completely rather than leaving them on standby can reduce electricity usage significantly," Botha advised.
"Many households are still wasting money on unnecessary energy consumption that adds no value to their lives."
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Save R500 monthly
Transport costs, particularly fuel usage, offer another substantial saving area, with Botha suggesting that combining trips and planning routes more efficiently can save R500 monthly for the average household.
Botha recommends conducting a financial audit quarterly, noting that spending patterns change with seasons and life circumstances.
"The beauty of this approach is its simplicity. Anyone can sit down for an hour with their bank statements and identify these savings without needing professional help," he said.
Botha explained that the key is consistency. Once you identify potential savings, you need systems to maintain them, such as automated transfers to savings accounts on payday before you can spend that money elsewhere.
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Source: Briefly News
