If you are currently living in South Africa you are likely to have heard those around you talking about the trouble that the South African economy is in. While some people might exaggerate the problems South Africans are currently looking at, it is right to be concerned. While taking out cash loans might feel like the only way out of the financial trouble currently facing South Africa in 2016, read this before you make any financial decisions.
2016 is going to be a tough year for many reasons, and the changes and ups and downs of the economy is going to affect us in different ways. So instead of painting an all-round bleak picture for you, we are going to break it up a bit and let you decide just how the outcome of this year is going to look for you.
We are all guilty of sinning. Even if you enjoy the once in a blue moon drink you are going to be a victim of sin tax. Sin tax is a form of tax which is placed on certain items such as cigarettes and alcohol. Those luxury goods which are affordable but which might be bad for you are usually placed under the sin category according to legislature. According to the budget speech recently released for 2016, the sinners among us are going to again be taxed rather heavily. Although 40 cents more here and there might not seem like it adds up to much, it does. A packet of cigarettes will now cost you 6.7% more than it did in the last financial year while a beer will cost you 8.5% more.
Sure it doesn’t sound like much but if you are a regular smoker, you are going to feel the pinch soon enough. If you are someone enjoying products that are sin taxed then you might want to start thinking about how you can save money if you want to continue to enjoy these delights.
The sin tax on alcohol in particular seems to have gone up exponentially since 2002. The excise duty tax on alcohol is set to increase between 6.7% and 8.5%. Many beverages are going to be taxed based on their absolute alcohol content. It is best to start spending wisely, and perhaps even cut back on the more sinful luxuries just in case you end up having to take out cash loans to get through the month. With even middle class South African families struggling, and the Rand not showing much improvement, it is time to tighten the financial belts and push through this difficult period. Should things get too distressing, and money become much too tight, you can always rely on cash loans.
If you haven’t been listening to the news these past few days, you might have missed the news of the petrol prices coming down by as much as 70 cents in March. As the Rand strengthen slightly recently and the global fuel prices fell, South Africans can breathe a slight sigh of relief when it comes to how much they fork out over petrol. No more worrying about if you need to take out cash loans in order to get to work at the end of the month, if you spend wisely your bank should still reflect some cash come the end of the month. Those who are driving diesel cars are however not going to benefit from this drop as diesel is set to increase by 15 cents per litre.
As things usually go, when the prices drop we could see a drop in food prices as well, something that will make many South African lives easier. Another part of the budget speech that is sure to make a dent on the tough times 2016 might bring, is that the Finance Minister has reduced VAT on certain cars, soya milk and other things. VAT is a type of tax that is placed on most food products, and other types of products and services we need. Staple foods are not taxed, however any increase in fuel prices still affect the price of food. While this relief might not help everyone, it is going to benefit a few people.
South Africa might be in for quite the bumpy ride this year but the effects are not going to reach everyone and not all of us are going to be affected in the same way. If you are having a rocky financial time then perhaps you will need a cash loan to help you through. Budget Cash has a number of easy to apply for cash loans options that can help you should you need financial assistance in 2016. Spend wisely and try to save some money this year, you never know when it might save you.
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